Market & Portfolio Update: May 2026
Global share markets delivered strong performance in May, with the United States leading the way. The S&P 500 rose approximately 5.3% in local currency (USD) terms, supported by strong corporate earnings results and continued investment in artificial intelligence.
Markets continued to keep a close eye on the tensions in the Middle East during May. Disruption to oil supply routes pushed energy prices higher, adding to inflation pressures across many countries. However, most markets ultimately held up reasonably well over the course of the month as tensions showed some signs of easing toward month end.
In New Zealand, the Reserve Bank held the Official Cash Rate steady at 2.25%, reflecting a difficult balancing act between rising price pressures driven largely by energy costs and a growth outlook that remains subdued.
The New Zealand Government delivered its Budget during the month, focusing on fiscal repair rather than new spending, with targeted investment in health, infrastructure and defence. The Government forecasts a return to surplus by 2028/29, earlier than previously expected.
Is your emotional attachment to money holding you back?
The way you attach value to money is a far more complex process than you might realise. Our brains are clever little engines, attributing different emotional values to the same amount of money, depending on how important it is to us.
I Googled My Financial Future. Here's What Happened
Spoiler alert: According to the internet, I should already be retired, living off dividends, and renting out three Airbnbs in Queenstown.
Sounds ideal. If only it were true.