Market Review: May 29, 2026

Closing Recap

Friday, May 29, 2026

U.S. stocks held in positive territory most of the afternoon as the S&P 500 (SPX) posted its longest winning streak since December 2023 at 9-weeks. If it can close next week higher for a 10^th straight week, it would be the first time since “Back to the Future” was in movie theaters (1985 for you non movie buffs) when it went 12 straight weeks ended that December. Overall, the S&P 500, Nasdaq Comp, Dow Industrials all posted record closing highs again today with the S&P and Nasdaq making it 7 straight days of gains  in what has been one of the more historic 2 month bull runs in history, paced by the massive gains in the technology sector! Speaking of the S&P Tech sector (XLK) rose 5.6% this week and was up over 19% in May (and +32% YTD) while the next best monthly sector winner was Healthcare (XLV) 2.4% on the month, while Materials, Communications, Financials, Industrials, Consumer Staples, and REITs slipped and both Energy (XLE) and Utilities (XLU) fell over 5% this month. Still, despite most sectors finishing lower in May, the fact the tech sector is so heavily weighed lifted the S&P 500 and Nasdaq overall. The semiconductor index (SOX) topped 13,000 today before paring gains after having been the main driver of the tech sector gains this year, now up 81% on the year. Economic data has been showing improvement as the lone piece of data today showed Chicago PMI for May a whopping 62.7, well above consensus of 51.8 (and prior month reading of 49.2) and highest reading since January 2022! Oil prices eased, posting big losses this week, capped by comments late week as President Trump said he is making a “final determination” on the Iran deal, helping push WTI crude below $87 a barrel for the first time since April 21^st. Though no final decision was made as of the close today, oil remains lower and stocks still held on to gains. It has been a helluva run for overall markets heading into the summer. For the week, the S&P 500 gained 1.43%, the Nasdaq climbed 2.39%, and the Dow climbed 0.9%; for May, the S&P 500 gained 5.15%, the Nasdaq climbed 8.36%, and the Dow climbed 2.78%.

With the bulk of earnings now truly behind us after a few key retailers and tech names the last two weeks (NVDA, SNOW, DELL, WMT, etc.), and PCE inflation data also behind us, market attention turns back to jobs data with ADP, JOLTs, and Nonfarm payrolls next week. The jobs report will be key especially after data showed this week that consumers are tapping savings as the Savings Rate falling to near historic lows of 2.6%. Also, Fed rhetoric has ramped up in more hawkish tones setting up trouble for new Fed Chair Warsh. No major central bank actions this upcoming week. Obviously headlines pertaining to a deal between the U.S./Iran is of much importance for the market as the war drags on for three months and the Strait of Hormuz still not allowing free passage easily. This weekend, many will focus on the ASCO cancer conference taking place in Chicago, a big event for many cancer related drug companies.

Federal Reserve officials continued to signal the U.S. central bank may need to raise interest rates in the future if the war in the Middle East leads to a persistent increase in already-high inflation. The potential shift in the monetary policy outlook has even been embraced by Fed Vice Chair for Supervision Michelle Bowman, one of the central bank’s most dovish policymakers. Bowman told a conference in Iceland on Friday that the war and its resulting energy shock could change her view on the outlook for rates. Philadelphia Fed President Anna Paulson said on Friday that monetary policy is “well positioned” considering the unacceptably high inflation pressures and economic uncertainty.

• Natural gas futures climb to a fresh 16-week high; NYMEX July nat gas rose 8.3 cents, or 2.5%, to $3.368 per million British thermal units (mmBtu), putting the contract on track for its highest close since February 6 for a second day in a row. For the week, the contract was up about 15% after sliding about 2% last week. For the month, it was up about 20% after falling about 4% in April.
• August gold settles +$60.60/oz, or +1.34%, at $4,593.00 (Prices fell to a two-month low of $4,365.76 on Thursday but closed higher.) while July silver prices were down slightly -0.05% at $75.88 an ounce helped the later part of the week as Treasury yields eased off more than year highs last week. metals also rose on reports that the U.S. and Iran may have agreed to extend their ceasefire, though still posted a monthly decline as inflation concerns and expectations of higher interest rates weighed on prices.

• Footwear sector: Stifel raised its price tgts for ONON to $60 from $58 and DECK to $144 from $140 saying the $197B global athletic footwear market has capacity for +4% 5-year and CAGR to $239B in 2030E representing +$42B incremental retail dollars. Stifel points to the durability of the sneaker market, size the growth potential of key sub-segments, and highlight market share winners and losers through 2030E. Stifel is most encouraged by premium brands with scale, momentum, and visibility to expanded distribution as highlights ONON as the #1 share gainer over the next 5 years as an underappreciated market winner.

• Chinese Electric Vehicles: Post recent earnings, Macquarie upgraded shares of LI from Underperform to Neutral with $15 tgt saying its large cash position (Rmb94B) is approaching its market cap (~Rmb113B), supported by the recently launched $1B buyback program and Q2 outlook suggests lower i6 volumes, which could improve mix despite a slower-than-anticipated L9 order intake, but believes Q1 is set to be the trough quarter. The firm also upgraded XPEV from Neutral to Outperform saying its strong order intake for the GX signals a strong start for Xpeng’s new model Wave, which is to be followed by the new MONA SUVs (L03/L05) and the larger G9L.

• Solar/Renewal Energy sector: NXT shares jumped after quarterly results and entered into an agreement to acquire BESS provider Prevalon Energy for up to $365M. The deal marks Nextpower’s entry into battery storage and AI data center power, adds 6.4+ GWh and a recurring LTSA base, and lifts FY27 guidance.
• Utilities/Water: UBS upgraded AWK to Buy from Neutral at UBS and raise PT to $140 from $137 due to declining regulatory overhang (expect deal with WTRG to close) over the next few months (and recent stock underperformance and notes AWK received a reasonable 9.7% ROE (vs. 9.45% currently allowed) proposed decision in the PA rate case recently and has made progress on merger approvals.

• AGIO announced that it will not advance tebapivat, a next-generation oral pyruvate kinase activator, in lower-risk myelodysplastic syndromes. This decision follows results from its Phase 2b trial that did not meet the company’s predefined threshold to support further development in this indication.
• BMY said its antitumor candidate Mezigdomide, as part of a combination regimen, improved cancer-free survival by more than 50% in a late-stage trial for multiple myeloma, a type of blood cancer. Citing data from its Phase 3 SUCCESSOR-2 trial, the company said that a Mezigdomide-containing regimen improved progression-free survival with a clinically meaningful and statistically significant effect.
• HQY reported a solid beat & raise with revenues topping consensus by ~1% and adj. EBITDA 8% above consensus. HSA accounts totaled 10.6 million (up 8%), with 18% growth in HSA investment accounts.
• MDGL announced new analyses of Phase 3 data and real-world evidence demonstrating Rezdiffra reduced markers of cardiovascular and liver-related risk in patients with MASH. The data are featured across eight poster presentations at the European Association for the Study of the Liver (EASL) Congress 2026, taking place May 27-30 in Barcelona, Spain
• MNKD said the FDA approved Afrezza Inhalation Powder for use in children and adolescents aged 6 and older living with type 1 and type 2 diabetes. This approval expands Afrezza’s availability beyond adults, introducing a new mealtime insulin option for pediatric patients and caregivers.
• OCS shares tumbled after reports primary endpoint of DIAMOND Phase 3 trials was not met and will not pursue FDA filing for ocs-1 in diabetic macular edema.
• REPL shares soared after saying it would resubmit application for its experimental treatment for advanced melanoma. The treatment, RP1, also known as vusolimogene oderparepvec, is being tested with BMY’s Opdivo; the FDA had twice rejected the drug, citing issues in clinical trials and inadequate evidence of effectiveness (shares of competing melanoma drug maker IOVA declined on the headlines).

• Aerospace: PKE Q4 net sales $24.187M topped est $22.3M (+43% YoY) while EPS $0.19 (+58% YoY) and adj EBITDA $5.171M (+51% YoY); FY2026 net sales $73.301M (+18% YoY). In Satellites: VSAT Q4 rev $1.171B vs est $1.196B (+2% YoY); adj EPS ($0.02) vs est ($0.36); adj EBITDA $370M (1% YoY) vs est $383.26Mm; backlog $4.073B (+3% YoY); Defense & Advanced Technologies rev +12% YoY; Communication Services rev (2%) YoY; Q4 awards $1.3B (+3% YoY).
• In Transports: railroads UNP, NSC shares were active after Fortune magazine President Donald Trump recently expressed interest in the federal government acquiring a 15% stake in a massive railroad merger—remarks that took on new resonance this week when a federal regulator put the $71.5B merger of Union Pacific and Norfolk Southern on pause for additional review https://tinyurl.com/5f8zzpnk
• In Chemicals: IFF agreed to sell its food ingredients business to private equity firm CVC Capital Partners in a deal that values the unit at about $4.3M, sharpening its focus on fragrances and health business in a deal that is expected to close at the end of the second quarter of 2027.

• Security Software: OKTA reported Q1 that beat on all key metrics, with revenue and CRPO upside that was similar to the past few quarters (12.2% cRPO growth beat est. by ~2 pts & NRR accelerated to 107%) supported by channel strength, new products, & rep productivity; Q2 cRPO guide for 10.8% y/y growth was better than expected (& typical 2 PT beat would imply accel to ~13% y/y growth said Jefferies). SentinelOne (S) reported an in-line Q1 and offered only in-line guidance for FY27. Positively, mgmt highlighted robust demand across endpoints, AI security, and cloud workload protection, while negatively, SentinelOne announced a restructuring plan (~8% RIF), and a large deal pipeline is back-end loaded, potentially pushing deals from 2QFY27 into 3QFY27
• Other Software movers: ADSK Q1 results showed a 2.1% / $41M beat vs. consensus with a modest $50M raise to the FY27 midpoint and the company’s $3.6B acquisition of MaintainX. PATH posted slightly better 1Q ARR growth of 12.3% (vs. Streets 12%) with net new y/y ARR growth accelerating for the second consecutive quarter. Incorporating the quarterly beat, FY27 ARR growth guide is moving up slightly to ~11.2%.

• IT Services: Jefferies downgraded shares of EPAM and GDYN to Hold as progress in Ai-led coding shows no signs of slowing down, while they upgraded EFOR to Hold from Underperform as expectations appear too pessimistic. The firm said they reiterate their cautious outlook on IT Services as Q1 results were largely in line, with full-year guidance mostly reiterated but 2H loaded, a reflection of some near-term weakness from clients more carefully managing spend. Downgrade EPAM as path back to sustainable double-digit organic revenue growth appears challenging and GDYN as exposure to retail industry increases risk of growth not accelerating as expected.
• Optical/Storage: NTAP shares jumped as reported a 4Q beat, and guided 1Q/FY27 above consensus expectations amid multiple positives during the quarter including AFA strength ($1.2B; +18% YoY) and AI acceleration (500 wins), while mgmt highlighted AFX’s continued momentum and multiple wins this quarter, including a deal with a top five US neo-cloud; guides Q1 FY2027 revs $1.75B–$1.90B vs est. $1.674B; optical names broadly lower the last few days (AAOI, GLW, COHR, LITE) after massive runs this year.