Market Report, 2026-05-11

Stocks climbed slowly on Monday as global investors remained optimistic about the economic growth prospects supported by the current AI boom. Nevertheless, the rally slowed as geopolitical developments in the Middle East grabbed headlines and caused oil prices to rise, a relatively common occurrence over the past two months. The U.S. president stated that the current ceasefire between the U.S. and Iran was on “massive life support” after he rejected a peace offer from Tehran. The president described Iran’s response to his proposal as “a piece of garbage” and said he “didn’t even finish reading it.” Brent crude oil has since rebounded to $104 per barrel.

All major stock indices ended the day in the green. The Dow Jones Industrial Average rose 95 points to 49,704. The Nasdaq rose 0.29% to 29,321. The S&P 500 rose 0.19% to 7,413. The energy sector led the market today as the prospect of prolonged higher oil prices returned. Technology, industrials, and utilities continued to post strong numbers from the boost provided by AI. Materials rallied on strong earnings momentum, partly because of AI and partly because of trade tensions with China.

The bond market reflected fears of inflation and additional war-related spending. The 5-year U.S. Treasury yield rose 6 basis points to 4.07%, and the 10-year yield rose 5 basis points to 4.41%. Gold held flat.

Today’s existing home sales numbers missed estimates and remained relatively depressed. Combined with the new home sales data released days ago, the figures show that the housing market remains in a state where homeowners are not rushing to sell because of the low mortgage rates they received, while homebuilders are implementing ways to reduce home costs.

An inflation report will be released tomorrow, through which we can gauge the impact of the war on U.S. prices. Adams Wealth Advisors will keep you informed.