The Markets (as of market close May 1, 2026)
Stocks continued their upward momentum last week, supported by cautious optimism surrounding a potential de-escalation of U.S. involvement in the Middle East. Encouraging inflation data and the early stages of what is expected to be a resilient earnings season also helped drive gains. Mega-cap technology stocks led the charge, pushing the NASDAQ to a 10-day winning streak—its longest in several years.
The S&P 500 finished just shy of its January record high, while the Russell 2000 posted modest gains. In contrast, the Dow and Global Dow edged slightly lower. Sector performance was led by information technology, energy, and consumer staples, while health care and financials lagged. Oil prices and the U.S. dollar moved higher, while gold and silver prices declined as investors shifted toward risk assets.
Last Week’s Economic News
- The Federal Reserve held interest rates steady at 3.50%–3.75%, noting continued economic expansion but persistent inflation pressures tied in part to energy prices.
- Manufacturing activity strengthened, with the S&P Global PMI rising to its strongest reading since May 2022—though growth may reflect inventory stockpiling rather than sustained demand.
- GDP grew at a 2.0% annualized rate in Q1 2026, rebounding from 0.5% in the prior quarter, driven by stronger government spending, exports, and investment.
- Consumer spending remained strong, with personal income rising, and consumption increasing, in March.
- Inflation remains elevated, as the PCE price index rose slightly in March and 3.5% year-over-year.
- Weekly jobless claims fell to 189,000, indicating continued labor market stability.
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Gas prices are reflecting ongoing pressure from global energy markets.
Eye on the Week Ahead
The April jobs report will be the primary focus this week. After several months of slowing employment trends, March showed a rebound in job growth. Stock market traders will be watching closely to determine whether that improvement can be sustained.
Have a nice week!
Sincerely,
Robert G. Carpenter