Banks deliver first S&P 500 May rise since 2009 A late sell off on Friday afternoon could not offset strong performances from the big US banks, as the S&P 500 index marked its first gain in May since 2009 as part of a seven-month share market rally. The benchmark index retreated from the all-time highs of the previous week but ended the month up 2.1 per cent. The financial sector continued to outpace all others, rising 5.9 per cent in May and 20.6 per cent for the year to date. Utilities and telecoms were the worst performing sectors for the month, dropping 9.6 per cent and 7.4 per cent respectively. Shares rose by more than 10 per cent in many of the biggest US banks over the month. Bank of America rose 11 per cent to $13.66, JPMorgan Chase gained 11.4 per cent to $54.59 and Goldman Sachs advanced 11 per cent to $162.08. Citigroup rose 11.4 per cent to $51.99. US economic data and business earnings reports were mixed while US Treasury yields had begun to rise, leaving investors to speculate about when the Federal Reserve's quantitative easing programme might end. Yields on 10-year bonds touched 2.2 per cent before retreating slightly, as weakness in stocks helped temper losses in bonds. The Vix, which tracks volatility in the S&P 500, rallied on the late sell off. Wall Street's fear gauge rose 12.2 per cent on the day to 16.3 - its highest level since mid-April. Ben Bernanke, Fed chairman, and other board governors have hinted that they are closely watching economic indicators to determine when to begin tapering bond buying. But with businesses looking strong and some economic data disappointing, investors have little reason to believe the equity rally is over. "Investors are still trying to digest what exactly Bernanke said and try to reach a conclusion on what's going to happen with quantitative easing," said Joseph Tanious, global market strategist for JPMorgan Asset Management. "There's a little bit of this "good news is good news" and "bad news is also good news."" After trading in and out of positive territory, major US indices closed the week with a sudden sell-off in the final two hours of the day. The S&P 500 fell 1.4 per cent to 1,630.75. The Nasdaq Composite Index lost 1 per cent to 3,455.91 and finished the month up 3.8 per cent. Apple, the heaviest-weighted stock on the Nasdaq, rose 1 per cent to $449.74 on the week, as it continued to recover from its lows of April. The Dow Jones Industrial Average sunk 1.4 per cent to 15,115.57 but rose 1.9 per cent on the month, driven by blue-chip stocks. In May, IBM rose 2.7 per cent to $208.02, Exxon advanced 1.7 per cent to $90.47, and Chevron ticked up 0.6 per cent to $122.75. However, consumer group Procter & Gamble fell 6.3 per cent over the week to $76.76, after bringing back former chief executive AG Lafley to head the company. Shares initially rose on the news. Deal news drove some of the week's strongest stocks. Smithfield Foods shares rose nearly 27.1 per cent to $32.94 after the pork producer said on Wednesday it was being bought by Chinese company Shuanghui. Dish Network's counterbid for wireless provider Clearwire sent the company's shares up 30 per cent to $4.46. Shares in NV Energy gained 17.7 per cent to $23.44 on news that conglomerate Berkshire Hathaway agreed to buy the power provider. In capital markets activity, Epizyme became the latest biotech company to float successfully on the US market this year. The cancer treatment research company raised $77m after offering 5.1m shares at $15. Shares in the company rose 53.3 per cent to $22.99 on its first day of trading on the Nasdaq. US homebuilders struggled this week after rising for most of the year. Lennar fell 8.1 per cent to $39.32 and Meritage Homes lost 5.4 per cent to $47.36, despite economic data that showed the housing market continues to recover. Luxury retailer Tiffany showed that consumers were not holding back on the finer things, as first-quarter sales easily beat expectations. Shares in the company rose 5.6 per cent on the month and are up just over 35 per cent on the year.