• Market Overview
• US Yield Curve
• AI ETFs
• BTC ETFs
• Apple Q2 Revenue
• Top 10 IPO Deals

Monthly Market Overview – May’ 2025

Markets closed May 2025 on a strong note, driven by optimism in tech and resilient earnings across sectors. Here’s a simple breakdown of how major U.S. indices performed during the month:

🔹 NASDAQ 100 (NDX) led the pack with a sharp +8.62% gain, powered by strong momentum in AI and tech-heavy names. The index showed consistent strength throughout the month with only minor dips.

🔹 S&P 500 (SPX) gained +5.92%, indicating broad market support. Tech and services sectors helped lift the index, reflecting solid earnings and investor confidence.

🔹 Russell 2000 (RTY) rose +4.77%, suggesting renewed interest in small-cap stocks. Early May saw a notable uptick, though gains cooled later in the month.

🔹 Dow Jones Industrial Average (INDU) was the laggard, posting a +3.81% increase. The gains were steady but relatively modest, as defensive sectors and legacy industrials saw limited upside.

Key Takeaways:

• Tech stocks outperformed, lifting the NASDAQ and contributing to S&P 500 gains.
  
• Small-cap stocks showed signs of recovery, though volatility remained.
  
• Market breadth improved, but leadership remained concentrated in growth and AI-driven sectors.
  

Looking Ahead:
June markets will watch for inflation updates, Fed rate signals, and mid-year earnings outlooks.

Investors may want to stay tilted toward tech while remaining diversified.

Source: Koyfin

US Yield Curve: May 2024 vs May 2025 – What’s Changed? What It Means for Investors

Over the past year, the US Treasury yield curve has seen notable shifts:

🔵 May 25, 2024 (Last Year):

An inverted curve, with short-term yields (5.35%–5.40%) higher than long-term yields (4.48%–5.03%). This reflected a tightening cycle by the Fed and recessionary fears.

🔷 May 25, 2025 (Today):

– The curve has flattened and partially normalized—with:

2Y yield dropping to 3.99%, down from 4.94%

– 10Y-30Y yields holding steady, signaling stabilization in long-term expectations

– Short-term rates still elevated, but slightly off their peaks

Key Investor Takeaways:

Soft Landing or Mild Recession Already Priced In?

The easing in 2Y and 3Y yields suggests the market expects fewer rate hikes ahead or even potential cuts, as inflation cools and economic data moderates.

Opportunities in Duration

With long-term yields now more attractive, long-dated Treasuries and bond ETFs may see inflows, especially if the Fed signals dovishness later in 2025.

Equity Market Implications

Lower short-term yields reduce discount rates → positive for growth stocks

A flattening curve may ease pressure on valuations and risk appetite

Sectors like tech, real estate, and discretionary could benefit from a shift away from peak-rate concerns.

Yield Curve Shape Still Signals Caution

The curve is still not fully upward-sloping. Investors should balance between risk-on and defensive positioning until macro clarity improves.

This yield curve evolution tells a story of transition — from rate-hike anxiety to cautious optimism.

Data Source: Yahoo Finance; Visuals: Powered by Power BI

AI ETFs Outlook: Top Performers to Watch in 2025

Artificial Intelligence continues to be one of the most disruptive and promising investment themes globally. From data infrastructure to robotics and big data analytics, investors are increasingly turning to thematic ETFs to gain diversified exposure to the AI boom.

Performance Overview — 1-Month Returns
The top 5 AI-focused ETFs by recent returns are:

• IGPT (Invesco AI & Next Gen Software ETF): +14.9%
  
• AIQ (Global X AI & Next Gen ETF): +13.85%
  
• XAIX (Xtrackers AI & Big Data ETF): +13.37%
  
• BOTZ (Global X Robotics & AI ETF): +11.2%
  
• DTCR (Global X Data Center & Digital Infra ETF): +9.63%
  

Data Source: Stock Analysis

These ETFs have delivered strong short-term returns, and some—like IGPT and AIQ—have outperformed not only in returns but also in sector diversity and quality of holdings.

Key ETF Highlights & Holdings Composition

🔹 IGPT

• Top Holdings: NVIDIA (8.4%), META (7.9%), GOOGL (7.6%), ISRG
  
• Strong exposure to U.S. large-cap tech and chipmakers driving AI infrastructure.

🔹 AIQ

• Top Holdings: Netflix, Alibaba, Palantir, Microsoft
  
• Offers global diversification across AI services, cloud, and data analytics.

🔹 XAIX

• Top Holdings: SAP, META, Microsoft, NVDA
  
• Excellent blend of enterprise AI, software, and big data leaders.

🔹 BOTZ

• Top Holdings: NVIDIA (9.7%), ABB, ISRG, DT
  
• Focused on robotics, automation, and smart machinery—ideal for industrial AI exposure.

🔹 DTCR

• A play on digital infrastructure — the foundational layer powering AI data centers and computation needs.
  

As seen in the breakdown, NVIDIA remains the most popular pick, appearing in nearly all ETFs with heavy weights, underscoring its dominance in AI chip design and training models.

Final Takeaway
Whether you’re seeking exposure to next-gen software (IGPT), automation (BOTZ), big data analytics (XAIX), or global innovators (AIQ), these ETFs offer compelling long-term thematic potential.

Bitcoin ETFs – Institutional Surge & Performance Breakdown

The Bitcoin ETF wave continues to dominate headlines — and the data tells a powerful story.

In just 5 weeks, $9 billion has flowed into US-listed Bitcoin ETFs, showing how fast institutional adoption is accelerating in crypto markets. The leader? BlackRock’s IBIT, now holding over $70 billion in AUM and ranked the 23rd largest ETF in the US. 🚀

🔹 33 consecutive days of inflows

🔹 $935M in a single day (May 22)

🔹 Bitcoin up approx. 50% since April lows

These aren’t just crypto-curious investors — this is serious capital rebalancing into digital assets.

The ETF wrapper has made Bitcoin accessible to traditional investors without the hassle of wallets and private keys.

What it means for investors:

The lines between traditional finance and digital assets are blurring fast. As ETF demand keeps rising, expect deeper liquidity, more institutional products, and price support that wasn’t there before.

$9 Billion Inflows in 5 Weeks

Bitcoin Spot ETFs have witnessed record net inflows, with May 2025 showing a streak of consecutive green days. Institutions are not just testing the waters — they’re diving in. 

iShares Bitcoin Trust (IBIT) leads the charge with $70.39B AUM, nearly 3.5x more than the second-largest, Fidelity’s FBTC ($20.99B). This ETF alone has the most inflows since late April — a clear institutional favorite.

Source: Coinglass

Performance Highlights

The Core 5 ETFs (IBIT, FBTC, GBTC, ARKB, BITB) show consistent 12-month returns near 55%, proving their value as long-term plays. Even 6-month and 3-month returns remain robust across most names.

Price vs. Access

ETF prices range from $30 to $119, offering multiple entry points for retail and institutional investors alike — from the budget-friendly Coinshares Valkyrie (BRRR) to the premium Tidal Commodities Hashdex (DEFI).

Volatility Insight

Net inflow bars show a strong reversal from outflows in Q1 2025 to consistent buying pressure in Q2. This suggests renewed confidence as BTC stabilizes near all-time highs.

Takeaway

Bitcoin is no longer a fringe bet — they’re competing with major equity and bond funds in terms of volume and interest. With ETFs offering a regulatory bridge, institutional flows and price performance are proving that crypto is mainstreaming — fast.

Apple Q2’ 2025 Revenue Analysis

Apple posted a strong revenue performance for Q2 2025 with total segment revenue reaching $95.4 billion, up 5% year-over-year. Here’s a breakdown of the key highlights from the charts:

🔹 iPhone remains dominant
iPhone revenue stood at $46.8B, contributing 49.1% of total revenue. Although YoY growth was modest at +2%, it continues to be the primary driver of Apple’s earnings.

🔹 Services surge continues
Apple’s services segment (which includes App Store, iCloud, Apple Music, and more) delivered a 12% YoY increase, reaching $26.6B, making up 28% of total revenue. This reflects Apple’s growing strength in recurring revenue and ecosystem monetization.

🔹 Mac and iPad show steady gains
Mac revenue rose to $7.9B (+7%), while iPad revenue increased to $6.4B (+15%), showing renewed consumer and educational demand post-supply chain normalization.

🔹 Wearables under pressure
Revenue from wearables, home, and accessories dropped by 5% YoY to $7.5B, signaling possible saturation in the wearables category.

Key Takeaways:

• iPhone and Services together contribute nearly 77% of total segment revenue.
  
• Apple is successfully diversifying beyond hardware with double-digit growth in Services.
  
• Mac and iPad are rebounding, while wearables face headwinds.
  

Outlook:
With services continuing to outperform and strong hardware fundamentals, Apple is well-positioned for stable growth. Investors should watch for continued margin expansion from Services and the upcoming product refresh cycle.

 Data Source: Apple Q2 2025 Financials
Graphics by: @TheQuantPost

Top 10 Global IPOs of 2025 (So Far) – Sector & Return Analysis

This year has seen a diverse range of IPOs across geographies and sectors — from tech giants to healthcare disruptors. Here’s a snapshot of how they’re performing:

 Key Highlights:

🔹 Top Performer:

CoreWeave Inc (USA) – a high-performance AI infrastructure firm – leads the chart with a 178.05% return since listing on Nasdaq. A strong reflection of the AI boom in 2025.

🔹 Healthcare and IT Shines:

Asker Healthcare Group AB (Sweden) and Hexaware Technologies (India) posted 23.54% and 12.52% returns respectively — showing investor appetite in HealthTech and IT services sectors.

🔹 Mixed Signals in Energy & Industrial Sectors:

Venture Global Inc (Energy, USA) is down -51.75%, and PT Cipta Sarana Medika Tbk (Indonesia) saw the sharpest decline at -61.80%, emphasizing regional and sectoral risk sensitivity.

🔹 Sector Breakdown:

AI/Cloud Infrastructure: CoreWeave Inc

Healthcare: Asker Healthcare, PT Cipta Sarana Medika

Technology & IT Services: Hexaware, SailPoint Inc, LG CNS

Industrial Materials: JX Advanced Metals

Energy: Venture Global Inc

Aviation: Flynas Co LCC

Travel & Hospitality: HBX Group (Europe)

Investor Takeaway:

IPO performance continues to be sector-driven. While AI and healthcare lead the pack, volatility in industrials and energy raises concerns. Diversification across sectors and markets remains key.

Keep an eye on post-IPO fundamentals, especially revenue growth, scalability, and sector momentum.

Source: WSJ

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