LPL Research
Last Updated: May 29, 2026
LPL Research provides its Weekly Market Performance for the week of May 25, 2026. U.S. stocks extended their recent momentum during the holiday‑shortened week with the S&P 500 notching fresh record highs and a ninth consecutive weekly gain. Investor sentiment remained anchored in optimism around the artificial intelligence (AI) theme and a potential truce between the U.S. and Iran, while falling oil prices and weaker bond yields were also supportive. Europe and Asia also broadly found traction on the same dynamics, amid local headlines. Meanwhile, commodities broadly declined as crude fell sharply with a U.S.-Iran agreement seemingly in the works, while gold moved higher.
Stock Index Performance
| Index | Week-Ending | One Month | Year to Date |
| S&P 500 | 1.46% | 6.26% | 10.77% |
| Dow Jones Industrial | 0.75% | 4.30% | 6.03% |
| Nasdaq Composite | 2.21% | 9.13% | 15.85% |
| Russell 2000 | 1.62% | 6.44% | 17.48% |
| MSCI EAFE | 0.90% | 4.99% | 9.25% |
| MSCI EM | 4.20% | 9.51% | 25.48% |
S&P 500 Index Sectors
| Sector | Week-Ending | One Month | Year to Date |
| Materials | 1.41% | 0.40% | 11.46% |
| Utilities | -2.28% | -3.30% | 3.46% |
| Industrials | 0.72% | 1.69% | 11.37% |
| Consumer Staples | -2.95% | -1.36% | 6.86% |
| Real Estate | -1.53% | 0.41% | 9.23% |
| Health Care | -0.34% | 4.50% | -3.72% |
| Financials | -0.61% | -0.69% | -5.94% |
| Consumer Discretionary | 1.50% | 3.83% | 3.86% |
| Information Technology | 4.28% | 14.87% | 23.20% |
| Communication Services | 0.00% | 3.05% | 9.04% |
| Energy | -5.26% | -5.14% | 24.61% |
Fixed Income and Commodities
| Indexes and Commodities | Week-Ending | One Month | Year to Date |
| Bloomberg U.S. Aggregate | 0.73% | 0.32% | 0.27% |
| Bloomberg Credit | 0.82% | 0.71% | 0.53% |
| Bloomberg Munis | 0.80% | 0.14% | 1.11% |
| Bloomberg High Yield | 0.43% | 0.50% | 1.56% |
| Oil | -9.06% | -17.81% | 53.00% |
| Natural Gas | 13.28% | 24.40% | -10.66% |
| Gold | 1.02% | 0.16% | 5.46% |
| Silver | 0.03% | 5.99% | 5.44% |
Source: LPL Research, Bloomberg 5/29/26 @2:57 p.m. ET
Disclosures: Indexes are unmanaged and cannot be invested in directly.
U.S. and International Equities
U.S. Equities: An abbreviated trading week didn’t slow stocks down in extending their recent record-breaking run for another week. The S&P 500 posted multiple record highs over the last four days en route to a ninth straight weekly gain, and back-to-back monthly gains, as all roads continued to lead back to AI and the Strait of Hormuz. Following the Memorial Day holiday, a quick bout of strikes in the Middle East were brushed off by markets and chalked up to be an “escalate-to-deescalate” tactic, leaving peace deal optimism front and center to power gains. Also, as a result of an expected deal between Washington and Tehran, easing crude prices and reprieve for Treasury yields were flagged as supportive for equities, in addition to cooler-than-expected inflation data.
Elsewhere, tech names faced some fairly choppy trading but persevered to gain ground on the week. The AI optimism narrative remained fully intact; however, the momentum trades that have powered the space higher in recent months showed some signs of taking a breather Wednesday before quickly bouncing back in the following session. A market cap milestone for South Korean chipmaker SK Hynix also lifted enthusiasm, while on the earnings front, shares of computer-maker Dell (DELL) spiked on a much stronger-than-expected sales outlook fueled by demand for AI servers.
International Equities: Across the pond, European stocks managed to cling to a weekly advance on the back of Friday’s gain after reversing week-to-date gains just one day prior. Contributing to the late-week volatility was a brief bounce in energy prices and a warning from European Central Bank (ECB) Chief Economist Philip Lane around persistent war-driven inflation impacts. Nonetheless, a drop in oil prices over the course of the week broadly boosted risk appetite for the energy-sensitive region, with cooler-than-expected inflation data for Germany, France, and Spain helping seal gains to close the week.
Major Asian exchanges ended mostly higher, with tech-heavy markets driving regional gains. South Korea’s KOSPI extended its string of outperformance with an 8% rally, surpassing the 8,000-point mark on the back of semiconductor shares as chipmaker SK Hynix breached the $1 trillion market cap landmark. Taiwan also gained ground on tech strength, while greater China ended mixed after fairly choppy trading. Chinese companies were supported by expectations that tighter capital controls may boost equity flows, housing market reform plans, and enthusiasm around chipmaker Huawei’s plans for innovative improvements. But the upside was countered by effects of the cross-border brokerage crackdown beginning to be felt and e-commerce shares in Hong Kong facing pressure amid intensifying competition. Japan also delivered strong gains on tech shares and U.S.-Iran peace deal hopes.
Fixed Income, Currency, and Commodity Markets
Fixed Income: Core bonds, as measured by the Bloomberg Aggregate Index, traded higher over the holiday-shortened week, paring back losses since the start of the Iran conflict that have pushed the 10-year Treasury yield higher by roughly 50 basis points (0.50%) and the 2-year yield higher by around 60 basis points (0.60%). The move higher is a combination of rising inflation expectations, higher term premia, and a repricing higher in monetary policy rate expectations. Currently, markets are pricing in roughly a 60% chance of a rate hike this year, with a full hike priced by April 2027 — a dramatic reversal from the rate-cut narrative that dominated early 2026. As well, the market’s implied neutral fed funds rate has been marked up near 4%, suggesting investors no longer believe this cycle ends at 2.5–3.0%, with market pricing closer to central bank hawks than even median expectations.
Importantly, long-run inflation expectations remain anchored. Market-implied breakevens have not broken out in a way that signals a loss of Federal Reserve (Fed) credibility, which is a key reason we believe the Fed can remain on hold rather than be forced to hike rates. Unlike in 2022, when the Fed was clearly behind the curve and chasing rising inflation expectations, markets now appear to be looking through near-term price pressures. That said, macro data has generally come in better than expected, and this week’s $183 billion in Treasury sales — while not strong — were not particularly weak either, suggesting investors are generally comfortable with current yield levels.
Bottom Line: The market has priced in a rate hike, reset the neutral rate, and is demanding a meaningful term premium, all without inflation expectations coming unanchored or the data rolling over. In our view, a lot of the bad news is already priced into the Treasury market, and we think the bar for a hike is much higher than what markets are currently implying.
Commodities and Currencies: The broader commodity complex declined this week. To no one’s surprise, crude oil prices remained in the spotlight, with West Texas Intermediate (WTI) trading over 10% into the red with a peace deal between Washington and Tehran seemingly in the making. While tighter global supplies from a historic supply shock will linger, worries of tighter supply for longer began to be priced out of futures curves. Hopes of the Strait of Hormuz re-opening soon places WTI on pace for a meaningful monthly decline of over 10%. Elsewhere, gold prices moved higher as expectations of a Fed rate hike ebbed slightly on hopes of a U.S.-Iran truce, continuing to behave somewhat contrary to its safe haven status by moving in the opposite direction of oil. Nonetheless, the yellow metal remained on track for a monthly loss, while silver prices steadied this week to remain on pace for a gain in May. In currencies, the U.S. dollar paced a monthly rise despite weakening over the last five days as the euro and British pound strengthened.
Economic Weekly Roundup
Highlights from the April Personal Income and Spending Report:
- First quarter (Q1) economic growth was revised down to 1.6% annualized from 2.0% as services spending rose less than originally estimated, but nondurable and durable goods spending was revised higher. Business investment in equipment and further spending in intellectual property is driving this economy and will continue to do so.
- Shipments of non-defense capital goods ex aircraft in April rose 0.4% after rising 1.3% in March. The race to build out AI-related infrastructure will likely continue throughout this year, supporting growth.
- The number of individuals applying for unemployment insurance benefits last week remained low, indicating the labor market is stable despite a falling hiring rate.
- Core inflation rose 0.2%, but we expect an acceleration next month as more inflation pressures seep into durable goods prices.
Bottom Line: Despite the downward revision to Q1 growth, we expect business spending will keep contributing to growth in the near term. Regarding the inflationary environment, supply constraints will cause inflation pressures to seep into both nondurable and durable goods most likely for the next few months. Core services ex housing inflation rose a mere 0.1%. But beware of the modest rise in those “supercore” metrics in April because of the one-off decline in financial services fees.
The Week Ahead
The following economic data is slated for the week ahead:
- Monday: S&P Global U.S. Manufacturing PMI (May final), ISM Manufacturing Index (May), Construction Spending (Apr)
- Tuesday: JOLTS Jobs Opening (Apr), Wards Total Vehicle Sales (May)
- Wednesday: MBA Mortgage Applications (May 29), ADP Employment Change (May), S&P Global U.S. Services and Composite PMIs (May final), Factory Orders (Apr), ISM Services Index (May), Durable Goods Orders (April final), Capital Goods Orders and Shipments (April final), Fed Beige Book release
- Thursday: Challenger Job Cuts (May), Nonfarm Productivity (1Q final), Unit Labor Costs (1Q final), Initial Jobless Claims (May 30), Continuing Claims (May 23)
- Friday: Change in Nonfarm, Private, and Manufacturing Payrolls (May), Average Hourly Earnings (May), Average Weekly Hours All Employees (May), Unemployment Rate (May), Labor Force Participation Rate (May), Underemployment Rate (May), Consumer Credit (Apr)
Important Disclosures
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk.
Indexes are unmanaged and cannot be invested into directly. Index performance is not indicative of the performance of any investment and does not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
This material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
Unless otherwise stated LPL Financial and the third party persons and firms mentioned are not affiliates of each other and make no representation with respect to each other. Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services.
Asset Class Disclosures –
International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
Bonds are subject to market and interest rate risk if sold prior to maturity.
Municipal bonds are subject and market and interest rate risk and potentially capital gains tax if sold prior to maturity. Interest income may be subject to the alternative minimum tax. Municipal bonds are federally tax-free but other state and local taxes may apply.
Preferred stock dividends are paid at the discretion of the issuing company. Preferred stocks are subject to interest rate and credit risk. They may be subject to a call features.
Alternative investments may not be suitable for all investors and involve special risks such as leveraging the investment, potential adverse market forces, regulatory changes and potentially illiquidity. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.
Mortgage backed securities are subject to credit, default, prepayment, extension, market and interest rate risk.
High yield/junk bonds (grade BB or below) are below investment grade securities, and are subject to higher interest rate, credit, and liquidity risks than those graded BBB and above. They generally should be part of a diversified portfolio for sophisticated investors.
Precious metal investing involves greater fluctuation and potential for losses.
The fast price swings of commodities will result in significant volatility in an investor’s holdings.
This research material has been prepared by LPL Financial LLC.
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