The Markets (as of market close May 22, 2026)
U.S. stocks continued their strong upward momentum last week, with the Dow, NASDAQ, and S&P 500 each reaching record highs during the week. The S&P 500 extended its winning streak to eight consecutive weeks, marking its longest stretch of gains since 2023. Stock traders largely brushed aside ongoing inflation concerns and political uncertainty surrounding the Federal Reserve.
After some mid-week profit-taking, markets stabilized and rallied into Friday, helped by strong earnings results from a major AI-related technology company that boosted the broader tech sector. Consumer discretionary, health care, real estate, and utilities led the market higher, while communication services, materials, consumer staples, and industrials lagged.
Crude oil prices moved lower on hopes of a potential diplomatic resolution between the U.S. and Iran, while Treasury yields eased modestly.
Last Week’s Economic News
- Housing activity showed mixed results in April. Building permits rose from March, though single-family permits declined. Housing starts fell overall, while completions increased.
- Weekly jobless claims edged slightly lower. Initial unemployment claims fell, while continuing claims remained relatively stable.
- Gasoline prices remained elevated. The national average price for regular gasoline is higher than one year ago despite a slight weekly decline.
- Labor markets remained relatively resilient, though certain regions such as New Jersey, Washington, and California continued to report elevated insured unemployment rates.
Eye on the Week Ahead
Stock traders and speculators will anticipate the release of the second estimate for first-quarter gross domestic product (GDP), following the initial report showing the economy expanding at a 2.0% annualized pace. Markets will also focus on updated inflation data for April, particularly consumer price trends, as the Federal Reserve continues balancing inflation concerns with slowing areas of economic growth.
Have a nice week!
Sincerely,
Robert G. Carpenter