Global Shares Gain 5% in May with Tech Up 16%
UBS•Global equities advanced 5% in May, lifting year-to-date gains above 10%, led by a 16% technology surge. Asian markets outside Japan climbed 11% and emerging stocks rose nearly 10%, while defensive sectors fell as much as 12% and the US market trades at 21 times forward earnings.
1. May Market Performance
Global equity markets rose 5% in May, marking a jump that brings year-to-date gains above 10%. This performance outpaces the full-year average that investors have grown accustomed to and reflects strong market momentum.
2. Technology and Emerging Markets Lead
Tech stocks surged 16% in May, driven by artificial intelligence, data centers and digital infrastructure names. Asian markets outside Japan climbed 11% and emerging markets gained nearly 10%, as investors sought growth opportunities beyond traditional Western equities.
3. Defensive Sectors Under Pressure
Energy shares fell 5.5% and utilities dropped nearly the same amount, reflecting profit-taking after a 26% rise earlier in 2026. Overall defensive and low-risk strategies declined up to 12% as markets rotated into higher-momentum sectors.
4. Elevated Valuations and Key Risks
The US market now trades at about 21 times next year’s expected earnings, above its long-term average and with tech valuations even higher by historical standards. Oil prices and geopolitical tensions in the Middle East remain the primary undercurrents influencing investor sentiment.
