S&P 500 Extends Winning Streak as Dow Breaks 50,000
May 26, 2026
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The S&P 500 Index logged its eighth consecutive positive week before heading into the Memorial Day holiday weekend.1 The Dow Jones Industrial Average closed above 50,000, registering a strong finish on Thursday and Friday.2 Rates stabilized in the higher range, with the 10-year Treasury closing the week at 4.56% and the 30-year at 5.06% after rising earlier in the week.3 Easing geopolitical tensions with Iran provided a boost to both equities and rates on Friday. Oil prices moved lower over the weekend, with West Texas Intermediate (WTI) crude oil now closer to $90 per barrel as a potential deal remains on the horizon.4 Rates are following suit this morning, rallying as the U.S. and Iran appear to be making progress toward a deal.
On the corporate front, Nvidia once again delivered a beat and raise, with Chief Executive Officer Jensen Huang stating, “demand has gone parabolic.”5 Earnings tied to the consumer provided little in terms of additional information but reinforced the narrative of resilient earnings and a steady consumer backdrop. However, the final University of Michigan consumer sentiment index fell to a record low of 44.8, down from the preliminary reading of 48.2.6 Kevin Warsh was also sworn in as Chairman of the Federal Reserve (Fed) on Friday, with his first Federal Open Market Committee (FOMC) meeting scheduled for June 16-17.7 In equity markets, SpaceX recently filed a confidential initial public offering (IPO), which investors are eagerly awaiting. The IPO is expected to be the largest in history.8
The holiday-shortened week ahead features several key economic data releases. The Personal Consumption Expenditures (PCE) and core PCE price index measurements are slated for Thursday and both are expected to remain elevated as inflation pressures persist and have been exacerbated by geopolitical tensions in Iran.9 Economists forecast PCE to rise 0.5% month-over-month and core PCE to be up 0.3% month-over-month, both measures would imply year-over-year readings over 3%.10 Additional data on Thursday includes new home sales and building permits,11 both of which are likely to remain under pressure with the continued elevated interest rate environment. Another key metric for Thursday is the gross domestic product (GDP) price index, which is expected at 3.6%,12 though investors will likely be more focused on the inflation detailed in the PCE report. Investor attention will remain centered on easing tensions with Iran and the resulting decline in energy prices and Treasury yields.
Sources:
1-4,6,9-12Bloomberg
5Reuters – Nvidia’s profit triples as Jensen Huang predicts further revenue growth - as it happened; 5/20/26
7Board of Governors of the Federal Reserve System – Kevin Warsh takes oath of office as chairman and a member of the Board of Governors of the Federal Reserve System, and the Federal Open Market Committee unanimously selects Warsh as its chairman; 5/22/26
8CBS News – Elon Musk's SpaceX files confidential initial public offering; 4/1/26
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