May 2020 Public Market Activity

Stock Markets Stage Sharp Rebound in May

​Easing of quarantine restrictions and hopes for a vaccine gave US equities a boost during May, adding on to strong year-to-date performances in large cap indices. Year-to-date, the S&P 500, Nasdaq, and Dow Jones gained 10.6%, 27.3%, and 2.3%, respectively, while the Russell 2000, a small cap index, is down 4.9%. In May alone, the large cap S&P 500 and Dow Jones gained 4.5% and 4.3%, and the tech-heavy Nasdaq and small cap Russell 2000 gained 6.8% and 6.4%, respectively. Optimism surrounding reopening economies  supported equities during May.

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IPO Activity in May Doubles April’s Figure

The IPO market experienced a significant recovery in May as the stock market began its recovery. According to Nasdaq, there were 18 IPOs in May that raised a collective $4.7 billion, both of which are double the values for April. Moreover, based on daily closes, the CBOE Volatility Index, averaged only 30 points in May, compared with 57 and 41 points in March and April, respectively. Excluding IPOs specifically for acquisitions, the largest IPO of the month was SelectQuote Inc., a direct-to-consumer online platform that markets a variety of insurance policies from various US insurance carriers. The company raised $570 million.