Market Report, 2026-05-22

As trading concludes on Friday, we would like to revisit the market for the week. Peace talks, inflation, and AI continued to be the main drivers of the market this week. Brent crude oil declined to below $90 per barrel, while stocks edged higher as the U.S. president and Iranian media signaled progress on a peace deal. However, prolonged higher oil prices have worked their way into the economy and boosted inflation. The bond market retreated in response, as investors now demand higher compensation. Following AI heavyweight Nvidia’s earnings this week, investors were reassured that the AI boom has not yet lost steam, as Nvidia’s revenue continues to soar at an incredible pace.

The Dow was the index winner of the week, rising 2.12% to 50,580, a new record high. The NASDAQ and S&P 500 both rose 0.9% to 29,482 and 7,473, respectively. Utilities, healthcare, and real estate led this week’s action with gains of more than 3%. Communication services and materials were the two sectors that posted losses.

The bond market reacted mostly to inflation. Both the 5-year and 10-year U.S. Treasury yields remained largely unchanged at 4.26% and 4.56% by Friday, though they did experience spikes by Tuesday. Those elevated levels reflect the market’s view of higher medium-term inflation and future uncertainty.

Economic data demonstrated that the real estate market continues to be subdued. Homebuilders are not confident in their future prospects, as elevated interest rates add to the cost of buying a home. Housing supply, however, showed higher-than-expected expansion. The Federal Reserve meeting minutes showed that a large number of officials viewed the existing easing bias in the Federal Reserve’s language as less than desirable. On the bright side, the U.S. leading economic indicators came in meaningfully higher than expected, offering more hope for future growth.

Next week, there will be a second revision of first-quarter GDP and a significant inflation gauge. Adams Wealth Advisors wishes you an enjoyable weekend, and we will continue to bring you the latest insights next week.