MARKETS
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Global markets continue to rally on strong tech earnings and easing geopolitical concerns. The global equity index (MSCI ACWI IMI) increased +5.05% in May and was up +12.66% YTD. The S&P 500, which tracks large cap U.S. stocks, increased +5.26% in May and was up +11.27% YTD. The Russell 2000 Index, which tracks domestic small cap stocks increased +4.37% in May and was up +18.15% YTD. The International developed equity index (MSCI EAFE) increased +3.07% in May and was up +9.37% YTD. The emerging markets index (MSCI EM) increased +9.69% in May and was up +25.61% YTD.
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In May, bond yields increased across maturities; the 30-year U.S. Treasury bond yield increased +1 bps to 4.99%, the 10-year yield increased +5 bps to 4.45%, and the 2-year yield increased +10 bps to 3.98%. The Bloomberg U.S. Aggregate Index, which is a measure of U.S. Bond prices, increased +0.31% in May and was up +0.38% YTD.
ECONOMIC AND GEOPOLITICAL HEADLINES
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According to the Bureau of Economic Analysis, U.S. real gross domestic product (GDP) increased in the first quarter of 2026 by +1.6%, up from the 4th quarter 2025 increase of +0.5%.
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The May Services PMI was 54.50%, up +0.90% from April. The May Manufacturing PMI was 54.00%, up +1.30% from April. Per the Institute for Supply Management (ISM), a reading above 50 is considered economic expansion and below 50 is considered economic contraction.
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As reported by the Bureau of Labor Statistics on June 5, 2026, May non-farm employment increased by 172,000 jobs, and the unemployment rate unchanged at 4.3%. In May employment increased in health care, leisure and hospitality, and local government. Employment in financial activities declined. Average Hourly Earnings (wages) increased by 3.4% year-over-year.
PERFORMANCE UPDATES
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The Equity Fund increased by +4.91% in May and is up +12.53% YTD. The Bond Fund increased by +0.25% in May and is up +0.16% YTD. The Stable Value Fund was up +0.07% for May and is up +1.09% YTD. The Northern Trust World Selection Index Fund increased by +3.94% in May and is up +9.31% YTD.
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The Sustainable Balanced Fund increased by +2.57% in May and is up +6.25% YTD. The Target Annuitization Date TAD 2025; TAD 2030; TAD 2035; TAD 2040; TAD 2045; TAD 2050; TAD 2055; TAD 2060; and TAD 2065 returns were +1.16%, +1.93%, +2.71%, +3.16%, +3.45%, +3.89%, +4.25%, +4.27%, and +4.27% respectively for May and is up 3.20%, +4.89%, +6.64%, +7.85%, +8.81, +9.73%, +10.47%, +10.53%, and +10.50% respectively YTD.
Note: Fund performance values are estimates.