Market Report, 2026-05-05

Green was the color at the start of this new week as major asset classes moved higher by the end of the trading day. The market looked past yesterday’s exchange of aggression in the Middle East after the U.S. stated that the ceasefire remains in place. Brent crude oil prices moderated to $110 per barrel.

The U.S. trade deficit widened in March to $60.3 billion from $57.8 billion in February, as imports of motor vehicles, consumer goods, and capital goods driven by AI-related demand increased, even as exports rose 2%, with some categories such as oil and other petroleum products reaching record levels. Job openings were slightly lower in March, continuing to reflect employers being cautious in both hiring and firing. New home sales increased consecutively in both February and March, reflecting the success of homebuilders’ strategies of price cuts and incentives. The service sector continued to expand, but at a slower pace than expected; prices paid remained elevated, reaching their highest level since October 2022, while new orders weakened significantly, though they continued to grow.

Stocks raced back toward their record highs. The Dow is approximately 1,200 points away from its previous record and ended the day 356 points higher at 49,298. The NASDAQ rose 1.31% to 28,015. The S&P 500 ended 0.81% higher at 7,259. Communication services was the only sector to end in the red, while technology led the market returning more than 2%.

The U.S. 5-year Treasury yield was 1 basis point lower at 4.08%, and the 10-year yield stood at 4.43%, 2 basis points lower than yesterday. Gold rebounded, approaching the 4,600 mark.

Tomorrow, the private payroll numbers will be released. Adams Wealth Advisors will be here to provide more insight.