The Markets (as of market close May 15, 2026)
Markets experienced increased volatility last week as hotter-than-expected inflation data and continued uncertainty over the conflict in Iran weighed on investor sentiment. While the S&P 500 posted its seventh consecutive weekly gain and briefly reached record highs, stocks retreated sharply on Friday amid rising energy prices and pressure in the bond market.
Energy was the top-performing sector, as crude oil prices surged above $100 per barrel amid ongoing disruptions in the Strait of Hormuz. Consumer staples also outperformed, while consumer cyclicals and real estate lagged. Small-cap stocks snapped their recent winning streak. Treasury yields moved notably higher, with the 30-year Treasury yield climbing above 5.0% for the first time since 2007, raising concerns about borrowing costs and financial conditions.
Last Week’s Economic News
- Consumer prices rose 0.6% in April, while inflation increased 3.8% year-over-year. Rising energy and shelter costs were major contributors.
- Manufacturing activity increased 0.7% in April, supported by gains in manufacturing and utilities.
- Consumer spending remained strong, with personal income rising and consumption increasing in March.
- Weekly jobless claims increased to 211,000, though overall labor market conditions remain relatively stable.
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Gas prices are reflecting ongoing pressure from global energy markets.
Eye on the Week Ahead
Investors will focus primarily on upcoming housing data this week, including housing starts and building permits. Markets will also continue monitoring inflation trends
Have a nice week!
Sincerely,
Robert G. Carpenter