NEW YORK, May 31, 2026, 13:03 (EDT)
Stocks in the U.S. go into June after the S&P 500 and Nasdaq finished May with record closes. Cash markets are closed for the weekend. Investors now wait for Friday’s jobs data and a full lineup of tech earnings next week, with the rally logging nine straight weeks.
Stocks rallied last week with the S&P 500 up 1.43%, the Nasdaq gaining 2.39%, and the Dow rising 0.9%. The S&P finished Friday at 7,580.07, the Nasdaq at 26,972.62, and the Dow at 51,032.34. Ohsung Kwon, chief equity strategist at Wells Fargo, told Reuters there was “euphoric sentiment” about artificial intelligence and said earnings drove the rally. Reuters
Next direction for stocks is likely to depend on U.S. economic data instead of just sentiment. Nonfarm payrolls are set for release Friday at 8:30 a.m. ET, according to the Bureau of Labor Statistics.
Investors are set to watch labor data with the Fed in focus. The Beige Book, the Fed’s regional economic survey, is due out Wednesday at 2 p.m. on the June calendar. The Fed’s next policy meeting is June 16-17.
Investors are watching the numbers closely. The personal consumption expenditures price index, which the Fed looks at for inflation, climbed 3.8% on the year in April. Core PCE increased 3.3%, according to the Commerce Department’s Bureau of Economic Analysis.
GDP growth is now looking even softer. The Bureau of Economic Analysis cut its first-quarter estimate to a 1.6% annual pace, down from 2.0%. BEA said investment and consumer spending came in below its earlier numbers.
High prices, slower growth, stocks at records — that’s the current setup. Barclays Chief U.S. Economist Marc Giannoni thinks May payrolls will climb by 75,000 and said the Fed could “focus more than usual on moving averages” since payroll numbers have whipsawed lately. Kiplinger
Fed officials aren’t offering much calm. Michelle Bowman, Vice Chair for Supervision, said it’s too soon to call the economic fallout from the Iran conflict, but said if the disruptions last, “broader effects on inflation” could follow. Reuters
AI names will stay in focus this week as Palo Alto Networks reports results after the bell Tuesday. CrowdStrike follows after Wednesday’s close. Investors are looking to see if demand for AI-driven security products supports the run-up in these stocks.
Broadcom is set to report its results Wednesday at 5 p.m. ET, returning focus to chip demand after a surge in technology stocks last week. The earnings call comes from another big AI name.
Main Street gets a check this week as Dollar General is set to report before the bell Tuesday. CEO Todd Vasos and CFO Donny Lau will hold a call at 9 a.m. ET. Investors will look at the numbers against other discount chains, with attention on how households with lower incomes are handling inflation.
Markets may not react much to good news now. Liz Ann Sonders, chief investment strategist at Charles Schwab, flagged “casino-like behavior” and said big run-ups add to concentration risk as people crowd into a small set of winners. Business Insider
Growth worries could resurface if the jobs report comes in soft. A stronger number might pull the Fed toward keeping rates up, or even tightening, especially if inflation doesn’t let up. For now, bulls still run the tape. This week tests how much they’ll shrug off bad news.
