Markets Close May at Record Highs as Inflation and Oil Prices Ease:
May closed on a high note as markets posted record gains during a shortened post-Memorial Day trading week. Easing inflation, falling oil prices, and growing optimism over a potential Middle East peace deal all combined to push stocks to new heights — capping the month with a strong finish across all major indexes.
The S&P 500 Index advanced 1.43%, while the Nasdaq Composite Index gained 2.39%. The Dow Jones Industrial Average climbed 0.90%. The MSCI EAFE Index, which tracks developed overseas stock markets, rose 0.99%.1,2
Source: Bloomberg Finance, L.P. (Performance data normalized 05/21/26 = 0)
Ninth Straight for S&P
Stocks got off to a good start as the chipmaker-led rally continued to support the broader market, while the White House reported diplomatic progress on a Middle East peace deal.3
Leadership shifted a bit midweek, with the Dow rising modestly to a new record close as oil prices fell.4
The S&P and Nasdaq opened higher Thursday on upbeat economic news. Both posted solid gains, while the Dow Industrials went sideways.5
Stocks wrapped up the week and the month on positive notes. Sliding oil prices and technology gains helped push all three averages to record intraday and closing highs, including the Dow cracking the 51,000 mark for the first time.6
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
Economic Updates
It was a mixed bag of economic news last week, with four key April data points released on Thursday.
The Fed’s preferred inflation measure came in cooler than expected. The personal-consumption expenditure (PCE) index rose 0.4% in April, less than the 0.5% expected. Annual PCE rose 3.8%.7
The Gross Domestic Product report showed the economy grew more slowly in Q1 than initially estimated, with the estimate revised down to 1.6% annualized growth.7
In a good sign for manufacturing, durable goods orders rose 7.9% in April, double the expected pace and the biggest increase in almost a year. The main reason? Civilian aircraft orders soared 166% after China ordered 200 planes following a recent U.S.-China presidential summit.8
Homebuyers bought 6.2% fewer new homes in April over the prior month. But investors focused on the fact that homebuyers bought 8.9% and 7.4% more new homes in February and March, respectively, over the prior month.9
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1WSJ.com, May 29, 2026
2Investing.com, May 29, 2026
3CNBC.com, May 26, 2026
4CNBC.com, May 27, 2026
5WSJ.com, May 28, 2026
6CNBC.com, May 29, 2026
7WSJ.com, May 28, 2026
8KPMG.com, May 28, 2026
9Realtor.com, May 28, 2026
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