NEW YORK, May 24, 2026, 13:03 EDT
- U.S. equities have put up eight weeks of gains for the S&P 500. The Dow finished Friday trading at an all-time high.
- NYSE traders get a holiday Monday for Memorial Day, so the week is shorter as markets wait on inflation numbers and some late earnings.
- The April PCE inflation report, the Fed’s preferred measure of prices, is expected Thursday at 8:30 a.m. EDT.
Stocks are trading near highs as Wall Street moves into a week shortened by the holiday. Earnings are taking a back seat to inflation, bond yields, and the question of whether investors want to keep buying after eight weeks of gains.
The timing is key. Q1 earnings have powered a lot of the move in equities, led by technology and AI, but traders are looking ahead to April personal consumption expenditures numbers. This price index is watched by the Federal Reserve since it captures what consumers spend across many goods and services.
U.S. stock markets will stay shut Sunday and the New York Stock Exchange won’t open Monday for Memorial Day. Trading picks back up Tuesday. That squeezes the reaction time for this week’s inflation and consumer data, plus the final wave of earnings.
Stocks closed up Friday, with the Dow Jones Industrial Average finishing 294.04 points, or 0.58%, higher at a new record of 50,579.70. The S&P 500 climbed 27.75 points, or 0.37%, to 7,473.47. The Nasdaq Composite added 50.87 points, or 0.19%, to 26,343.97. The S&P 500 has now logged eight straight weeks of gains, its longest winning streak since late 2023.
Stocks drew support from signs of movement in U.S.-Iran negotiations and a strong run of earnings. “The earnings and economic backdrop looked ‘really solid,’” said James St. Aubin, chief investment officer at Ocean Park Asset Management. He said headlines from the war had been a major drag on equities. Reuters
Macro drivers are back in focus. Anthony Saglimbene, chief market strategist at Ameriprise, said the rush over earnings is past, with “company reporting is kind of done now.” Jim Baird, chief investment officer at Plante Moran Financial Advisors, took a sharper view: “Inflation concerns continue to flare.” Reuters
March PCE prices climbed 3.5% year over year, according to the Bureau of Economic Analysis. Core PCE, which excludes food and energy, was up 3.2%. The next update, covering April, is due out Thursday at 8:30 a.m. EDT.
Fed minutes out earlier showed most officials said “some policy firming” might be needed if inflation keeps running above 2%. The central bank kept its target range at 3.5% to 3.75% at the April meeting. The next meeting is scheduled for June 16-17. Federal Reserve
Bond yields are still the sticking point. When bond prices slip, yields jump, which can put stocks under pressure by lifting borrowing costs and making shares seem pricey. The 10-year Treasury yield hit 4.69% this week, the highest since January 2025, before settling back to 4.56%, Reuters reported Sunday.
Greg Faranello at AmeriVet Securities said yields now might push up mortgage rates. Sam Lynton-Brown at BNP Paribas said stocks are holding up: “stocks and credit are fine with those high yields.” Reuters
Costco, Best Buy, and Dollar Tree are set to report, with investors tracking the impact of higher gasoline prices on consumers. Results from Salesforce and Dell are expected to shed more light on corporate tech budgets. Walmart’s cautious yearly guidance last week has kept some doubt around consumer strength.
Nvidia kept the AI trade moving, guiding for $91 billion in second-quarter revenue, topping forecasts. Edward Jones analyst Brock Weimer said the results backed up “robust AI-related spending trends.” Qualcomm jumped 12% Friday. Dell and HP also climbed after better revenue at Lenovo. Reuters
UBS Global Wealth Management lifted its S&P 500 target for 2026 to 7,900, up from 7,500, pointing to solid consumer spending and strong data center demand. UBS said that means about 6% upside from the previous close. Morgan Stanley is calling for 8,000 by year-end.
A hot PCE number, fresh oil worries or another yield spike could make a mild pullback worse. Reuters’ Morning Bid noted June could see more pressure on energy if the Strait of Hormuz keeps closed and fuel inventories drop. That would hit inflation nerves already in play for stocks.
Right now, strong profits and a market willing to overlook geopolitical risk are backing the rally. For Tuesday, investors have less cushion from earnings and will have to lean harder on the upcoming inflation data.
