U.S. equity markets extended their advance in May, pushing to new all-time highs amid elevated Treasury yields, persistently firm inflation, a historic leadership transition at the Federal Reserve, and the uneven trajectory of peace negotiations surrounding the Iran conflict. Equity investors largely looked through rising bond yields—with the 30-year Treasury briefly touching its highest level since 2007 intra-month—and remained focused on a very strong first-quarter earnings season, particularly in technology and AI. Financial conditions improved modestly into month-end as Treasury yields and oil prices pulled back on signs of potential diplomatic progress in the Middle East.