Market Report, 2026-05-29
Stocks finish the holiday-shortened week at or near fresh all-time highs, as investors continued to balance elevated inflation, resilient economic data, strong AI-related earnings, and improving geopolitical headlines.
For the week, the Dow Jones Industrial Average rose 0.9%, breaking the 51,000 level for the first time, the Nasdaq added 2.8%, and the S&P 500 gained 1.45%. The major indices were led once again by growth and technology areas of the market, with artificial intelligence remaining the central theme. Dell Technologies helped reinforce that narrative today after reporting strong earnings and highlighting continued demand tied to AI infrastructure. More broadly, investors continued to reward companies viewed as beneficiaries of the ongoing AI buildout.
Geopolitics also remained an important driver this week. Markets were supported by optimism that the U.S. and Iran are moving closer to a diplomatic agreement that could extend the ceasefire and reopen key shipping routes through the Strait of Hormuz. Oil prices moved lower this week on those hopes—shedding about $6 to $88 per barrel, easing some of the inflation pressure that has weighed on consumers and complicates the Federal Reserve’s interest rate decisions.
Treasury yields moved lower this week, with the 10-year Treasury at 4.44%, and the 30-year Treasury at 4.97%. Bond investors remained focused on the same push and pull that drove equities: inflation is still too high, but any easing in energy prices could help reduce pressure in the months ahead.
On the economic front, the Federal Reserve’s preferred inflation gauge remained a key focus. It was reported yesterday that the April PCE inflation index rose 3.8% from a year earlier, while core PCE rose 3.3%, keeping inflation well above the Fed’s 2% target. Personal income was flat, while spending continued to rise, suggesting consumers are still spending but may be doing so with less cushion. First-quarter GDP was also revised lower to 1.6%, reflecting softer consumption and investment.
Next week, we will be watching ISM Purchasing managers data, job openings, productivity figures, and the May employment report. Thanks for listening. Adams Wealth Advisors will be back next week to keep you informed on the markets and economy. Have great weekend!