Weekly Wrap

The stock market extended its rally during the holiday-shortened week, with the S&P 500 (+1.4%), Nasdaq Composite (+2.4%), and DJIA (+0.9%) all finishing at fresh record highs. Leadership remained concentrated in technology and AI-related stocks, though improving participation across small- and mid-cap shares also helped support the advance.

The information technology sector (+4.6%) was the clear leader, powered by continued strength in semiconductors, software, and AI infrastructure names. The PHLX Semiconductor Index gained 5.1% for the week despite some midweek consolidation, as investors continued rewarding companies tied to AI spending trends. Micron surged after a bullish analyst call early in the week, while AMD, onsemi, and several hardware-related names also posted strong gains.

Software stocks were another major area of strength. The iShares Expanded Tech-Software ETF climbed 8.1%, fueled by strong earnings reactions and AI optimism surrounding names such as Snowflake. Microsoft also provided major support after reports that the company is preparing to unveil a new AI-powered coding framework.

Hardware stocks became a major leadership group later in the week following blowout earnings reports from Dell and NetApp, which sparked broad gains across server, storage, and enterprise infrastructure companies. That helped offset more mixed action from NVIDIA and several other semiconductor bellwethers, which at times struggled to build on their recent rallies despite continued enthusiasm surrounding the AI trade.

Outside of technology, several economically sensitive groups benefited from falling Treasury yields and sharply lower oil prices. The Russell 2000 (+1.8%) and S&P Mid Cap 400 (+1.4%) both outperformed the broader market, reflecting improving risk appetite beneath the surface. Consumer discretionary stocks (+1.5%) also moved higher, aided by strength in cruise lines, airlines, retailers, and homebuilders. The iShares U.S. Home Construction ETF gained 2.3% for the week as declining yields improved sentiment toward housing-related names.

A major macro driver throughout the week was the continued decline in oil prices amid optimism surrounding negotiations between the U.S. and Iran. WTI crude oil fell roughly 11.5% for the week, pressuring the energy sector (-5.4%), which finished as the market's weakest-performing group by a wide margin. The retreat in oil prices also helped ease inflation concerns and contributed to lower Treasury yields, with both the 2-year and 10-year Treasury yields declining 11 basis points during the week.

The softer rate backdrop helped offset somewhat mixed economic data. Inflation remained elevated in the latest PCE report, while downward revisions to Q1 GDP and softer housing data reinforced concerns about slowing economic momentum. At the same time, durable goods orders were surprisingly strong, labor market data remained relatively stable, and the Chicago PMI unexpectedly returned to expansion territory.

Defensive sectors generally lagged during the week's risk-on advance. Consumer staples (-3.2%) posted the steepest decline outside of energy following several disappointing earnings reactions, including weakness in Costco. Utilities (-2.1%) and real estate (-1.4%) also underperformed, while financials (-0.7%) and health care (-0.3%) finished slightly lower overall.

Overall, the week reinforced the market's strong upward momentum as investors continued rotating aggressively into AI beneficiaries, software leaders, and technology infrastructure names. At the same time, falling oil prices and lower Treasury yields helped broaden participation across smaller-cap and cyclical areas of the market, allowing equities to push deeper into record territory despite mixed economic data and ongoing geopolitical uncertainty.

• Nasdaq Composite: +2.4% week-to-date
• Russell 2000: +1.8% week-to-date
• S&P Mid Cap 400: +1.4% week-to-date
• S&P 500: +1.4% week-to-date
• DJIA: +0.9% week-to-date

Monday:

Market closed for Memorial Day. 

Tuesday:

The S&P 500 (+0.6%), Nasdaq Composite (+1.2%), and DJIA (-0.2%) posted a mostly higher start to the holiday-abbreviated week, with the S&P 500 notching fresh record highs.

The market was supported by another rally across semiconductor names, pushing the PHLX Semiconductor Index 5.5% higher and helping the broader information technology sector (+1.7%) finish as the top-performing S&P 500 sector.

Micron (MU 895.88, +144.88, +19.29%) posted a massive gain, surpassing a $1 trillion market capitalization after UBS raised its price target on the stock to $1,625 from $535 and reiterated its Buy rating.

Advanced Micro Devices (AMD 503.89, +36.38, +7.78%) and onsemi (ON 126.98, +10.78, +9.28%) were among the other notable chipmakers trading sharply higher, though NVIDIA (NVDA 214.86, -0.47, -0.22%) continued to struggle to hold intraday gains following last week's earnings release.

In addition to strong tech leadership, the market benefited from a more favorable macro backdrop today, with oil prices and Treasury yields both retreating amid reports that the U.S. and Iran made progress on negotiations over the weekend. Crude oil futures settled today's session $2.86 lower (-3.0%) at $93.89 per barrel, and the 10-year note yield settled down seven basis points to 4.49%.

Airline names such as United Airlines (UAL 105.92, +5.96, +5.96%) moved higher amid the retreat in oil prices, helping the industrials sector (+1.5%) outperform.

Similarly, construction materials names, including Martin Marietta (MLM 560.93, +24.45, +4.56%), were among the top performers in the materials sector (+1.4%).

The communication services sector (+0.9%) also notched a solid gain as Alphabet (GOOG 384.84, +5.46, +1.44%) rebounded from a recent bout of weakness, while gains were more modest elsewhere.

As for today's laggards, the energy sector (-2.8%) was the worst performer given the slide in oil prices, while the defensive consumer staples (-1.7%) and health care (-1.0%) sectors moved lower as investors favored more growth-oriented areas of the market.

AutoZone (AZO 3100.11, -306.39, -8.99%) finished as the worst-performing S&P 500 component after delivering a mixed Q3 earnings report, with a sizable EPS beat offset by slightly light revenue and meaningful gross margin pressure tied to inflation-related accounting impacts. Even so, the consumer discretionary sector (+0.1%) managed to finish modestly higher as Tesla (TSLA 433.48, +7.47, +1.75%) provided solid mega-cap leadership while cruise line stocks outperformed in typical fashion amid falling oil prices.

Outside of the S&P 500, the Russell 2000 (+1.8%) and S&P Mid Cap 400 (+1.5%) outperformed as lower Treasury yields continued to support smaller-cap and more economically sensitive areas of the market.

Overall, today's session reflected continued enthusiasm across semiconductor and AI-linked stocks, while easing pressure from oil prices and Treasury yields provided additional support for broader market participation. Even with some mixed action beneath the surface, investors remained willing to rotate into cyclical and growth-oriented groups as the S&P 500 continued its push into record territory.

U.S. Treasuries began the holiday-shortened week on a firmly higher note, encouraged by a pullback in the price of oil, which resulted from more indications that a peace deal with Iran is likely be finalized soon. The U.S. Treasury sold $69 billion in 2-year notes to good demand. The 2-year note yield settled down seven basis point to 4.05%, and the 10-year note yield settled down seven basis points to 4.49%. 

Reviewing today's data:

• The Conference Board's Consumer Confidence Index slipped to 93.1 in May (Briefing.com consensus: 92.0) from an upwardly revised 93.8 (from 92.8) in April. In the same period a year ago, the index stood at 98.4.
  
  • The key takeaway from the report is that inflation pressures had consumers feeling less optimistic about current conditions; however, those same pressures did not squash expectations for better conditions six months from now.
• April S&P Case-Shiller Home Price Index increased 0.8% (Briefing.com consensus 1.0%) following a previous increase of 0.9%.
  The March FHFA Housing Price Index increased 0.1% (Briefing.com consensus 0.1%), with the prior reading revised to -0.1% (from 0.0%).

Wednesday:

The stock market had a relatively quiet session, with some profit-taking across semiconductor names limiting gains across the S&P 500 (flat) and Nasdaq Composite (+0.1%), while another retreat in oil prices supported strength in the broader market, sending the DJIA (+0.4%) to fresh record highs.

While the S&P 500 managed to capture a record closing high, the index spent much of the session in negative territory, which was largely due to weakness in the information technology sector (-0.4%). The sector finished well off its session lows, but semiconductor names remained a point of weakness following yesterday's Micron-led rally.

Micron (MU 928.41, +32.53, +3.63%) and other memory storage names managed to finish the session with gains, but large chipmakers such as NVIDIA (NVDA 212.60, -2.26, -1.05%) and Intel (INTC 121.77, -1.75, -1.42%) traded lower, while Qualcomm (QCOM 233.40, -15.42, -6.20%) was a notable laggard.

The PHLX Semiconductor Index finished 1.4% lower.

The information technology sector was one of five S&P 500 sectors to finish lower today, though losses elsewhere were generally modest.

The financials sector (-0.8%) was another laggard, with particular weakness across investment manager and insurance names. JPMorgan Chase (JPM 299.28, -7.46, -2.43%) traded lower after CEO Jamie Dimon said at a conference that the bank could commit $10 billion to $20 billion toward an acquisition in the coming years.

Elsewhere, the energy sector (-1.5%) finished with the widest loss as optimism surrounding a potential peace agreement between the U.S. and Iran sent oil prices sharply lower again today. The White House denied reports from Iranian state media suggesting the two sides are close to finalizing a memorandum of understanding that would restore traffic through the Strait of Hormuz, though Secretary of State Marco Rubio said during a cabinet meeting that some progress has been made toward a peace agreement.

Crude oil futures settled today's session $5.29 lower (-5.6%) at $88.60 per barrel.

Airlines, cruise lines, and homebuilders all outperformed again today, with the latter two groups helping lift the consumer discretionary sector (+1.9%). Treasury yields also moved modestly lower, and the iShares U.S. Home Construction ETF advanced 1.6%.

Elsewhere in the sector, Amazon (AMZN 271.85, +6.56, +2.47%) provided solid mega-cap leadership, while MGM Resorts (MGM 41.95, +3.50, +9.10%) was among the best-performing S&P 500 components after several brokerage upgrades.

The consumer staples sector (+1.0%) also outperformed as investors did some bargain hunting following yesterday's retreat, while Meta Platforms (META 635.26, +22.92, +3.74%) moved higher this afternoon after TechCrunch reported that the company plans to introduce global consumer subscription offerings, helping lift the communication services sector (+0.7%) to its best levels of the session.

Overall, stocks remained near record levels despite some consolidation across semiconductor names, while falling oil prices continued to reinforce optimism that a U.S.-Iran agreement is becoming increasingly plausible. At the same time, investors have continued to show a willingness to buy dips across semiconductors and other AI-related names, which could fuel another push further into record territory.

U.S. Treasuries padded this week's gains during an otherwise quiet Wednesday session. Treasuries set fresh lows after today's $70 billion 5-year note auction met weaker demand than yesterday's solid 2-year note sale, but the last couple hours saw a return to pre-auction levels. The 2-year note yield settled down two basis points to 4.03%, the 5-year note yield settled down one basis point to 4.18%, and the 10-year note yield settled down one basis point to 4.48%. 

Reviewing today's data:

• The weekly MBA Mortgage Index fell 8.5% to follow last week's 2.3% decrease. The Purchase Index was down 0.4% while the Refinance Index fell 18.1%.

Thursday:

The stock market navigated a busy day of earnings reports, economic data, and geopolitical developments to chart a higher finish across the major averages. An intraday surge across tech names resulted in fresh record highs for the S&P 500 (+0.6%) and Nasdaq Composite (+0.9%), while mixed strength in the broader market kept the DJIA (+0.1%) near its flatline, though its modest gain also resulted in a record closing high.

The market opened to relatively broad weakness as overnight headlines of the U.S. and Iran exchanging military strikes pushed oil past the $92 per barrel mark. Less than an hour into the session, however, Axios reported that U.S. and Iranian negotiators had agreed to a 60-day memorandum of understanding aimed at extending the ceasefire and opening negotiations over Iran's nuclear program, though the proposal still requires President Trump's approval.

Oil reversed its earlier gains, with WTI crude oil futures settling today's session just $0.32 higher (+0.4%) at $88.92 per barrel.

The retreat in oil prices helped lift the major averages from a mostly lower open to a mostly higher finish, with the information technology sector (+1.3%) making a decisive move higher.

The sector had already been hovering near its baseline as a rally in software names offset an early extension of recent semiconductor weakness.

Though not a component of the S&P 500, Snowflake's (SNOW 239.12, +63.86, +36.44%) blowout earnings report featured a ramp in monetizing AI production, which added fuel to the broader software space. Oracle (ORCL 203.68, +12.72, +6.66%) and Palantir Technologies (PLTR 143.34, +10.83, +8.17%) were among the bellwethers that traded sharply higher, while Microsoft (MSFT 426.99, +14.32, +3.47%) was a "magnificent seven" standout after The Information reported that the company will soon unveil a new AI-powered coding framework.

The iShares GS Software (IGV 95.64, +2.60, +2.79%) finished solidly higher.

Meanwhile, the reversal in oil prices spurred buying interest across semiconductor names, with the PHLX Semiconductor Index reversing its early loss to finish 1.0% higher.

The health care sector (+1.4%) finished with the widest gain, buoyed by a strong showing from its largest component, Eli Lilly (LLY 1127.45, +44.53, +4.11%), while Agilent (A 135.42, +19.58, +16.90%) surged after topping earnings estimates.

Best Buy (BBY 74.74, +10.20, +15.81%) was another standout following earnings, helping support gains in the consumer discretionary sector (+0.5%).

Gains were more modest elsewhere, with five total S&P 500 sectors finishing higher.

Losses were also relatively modest, with the exception of the defensive utilities sector (-1.1%).

The consumer staples sector (-0.5%) was another relative laggard despite post-earnings rallies from Dollar Tree (DLTR 113.00, +17.13, +17.87%) and Hormel Foods (HRL 23.59, +2.63, +12.55%), while Costco (COST 995.20, -8.49, -0.85%) traded lower ahead of its earnings report after the close.

Outside of the S&P 500, the Russell 2000 (+0.6%) and S&P Mid Cap 400 (+0.1%) reversed earlier losses as Treasury yields moved lower alongside oil prices.

Overall, today's session highlighted the market's continued sensitivity to geopolitical headlines, though the sharp reversal in oil prices ultimately helped restore risk appetite and support another push into record territory. Investors also continued to show a willingness to buy dips across semiconductor and AI-related names, reinforcing the market's underlying momentum despite elevated volatility earlier in the day.

U.S. Treasuries continued this week's rally after overcoming some early weakness on a day that was filled with data and market-moving news developments.  The market remained just below session highs after today's $44 billion 7-year note sale made for a strong finish to this week's note auction slate with the first stop-through in this tenor since December.

The 2-year note yield settled down one basis point to 4.02%, and the 10-year note yield settled down three basis points to 4.46%.

Reviewing today's data:

• Personal income for April decreased slightly, resulting in an unchanged month-over-month reading (Briefing.com consensus 0.5%) after a revised 0.5% increase (from 0.6%) in March. Personal spending rose 0.5% month-over-month (Briefing.com consensus 0.4%) following a revised 1.0% increase (from 0.9%) in March. The PCE Price Index increased 0.4% month-over-month (Briefing.com consensus 0.5%), leaving it up 3.8% yr/yr versus 3.5% in March. The core PCE Price Index rose 0.2% (Briefing.com consensus 0.3%), leaving it up 3.3% yr/yr versus 3.2% in March.
  
  • The key takeaway from the report is that the lack of income growth combined with an acceleration in the year-over-year core PCE Price Index (to 3.3% from 3.2%) will invite stagflationary concerns, especially if this dynamic continues in the following months.
• The second estimate of Q1 GDP showed a downward revision to an annual rate of 1.6% (Briefing.com consensus 2.0%) from 2.0% in the advance estimate. The GDP Chain Deflator was revised down to 3.5% (Briefing.com consensus 4.5%) from 3.6% in the advance estimate.
  
  • The key takeaway from the report is that investment and consumer spending in Q1 were weaker than previously estimated while government spending and the impact of trade were essentially unchanged from the advance estimate.
• Initial jobless claims for the week ending May 23 increased by 5,000 to 215,000 (Briefing.com consensus 214,000) from last week's revised reading of 210,000 (from 209,000), while continuing jobless claims for the week ending May 16 rose to 1.786 million from a revised 1.771 million (from 1.782 million) in the prior week.
  
  • The key takeaway from the report is that even with this increase in initial and continuing claims, the overall level of jobless claims remains relatively low.
• Durable goods orders surged 7.9% month-over-month in April (Briefing.com consensus 1.7%) after increasing a revised 1.1% (from 0.8%) in March. Excluding transportation, orders were up 1.1% month-over-month (Briefing.com consensus 0.5%) following an upwardly revised 1.1% increase (from 0.9%) in March.
  
  • The key takeaway from the report is that a big increase in aircraft orders from Boeing (BA) fueled the headline increase while nondefense capital goods orders excluding aircraft decreased 1.1%, reflecting some newfound softness in business spending.
• New home sales decreased 6.2% month-over-month in April to a seasonally adjusted annual rate of 622,000 from a revised 663,000 (from 682,000) in March. On a year-over-year basis, new home sales were down 11.3%.
  
  • The key takeaway from the report is that the median sales price increased even though the supply (9.4 months) of homes approached this year's high (9.9) from January.

Friday:

The stock market ended a productive week on a record-setting note, with the S&P 500 (+0.2%), Nasdaq Composite (+0.2%), and DJIA (+0.8%) all setting fresh record intraday and closing highs.

Leadership was narrow, with only the information technology (+1.9%) and financials (+0.6%) sectors finishing higher, though the tech rally was enough to offset broader weakness.

There was a strong earnings component to the gains, as Dell (DELL 421.30, +104.25, +32.88%) and NetApp (NTAP 174.29, +31.89, +22.39%) rocketed higher after topping expectations, bringing along other hardware names such as Hewlett Packard Enterprise (HPE 43.06, +4.85, +12.69%).

Elsewhere in the sector, software names posted solid gains of their own, sending the iShares GS Software ETF 6.3% higher. ServiceNow (NOW 124.37, +15.64, +14.38%) and Oracle (ORCL 225.81, +22.11, +10.85%) notched double-digit gains, while Microsoft (MSFT 450.24, +23.25, +5.45%) was a mega-cap standout for the second consecutive day.

Notably, semiconductor strength was mixed today, with the PHLX Semiconductor Index finishing flat.

The financials sector was the only other S&P 500 sector that traded higher, supported by strength across major banking names and a sharp gain in Robinhood Markets (HOOD 94.30, +9.46, +11.15%) after the company announced the official Trump Accounts app is now available for download.

Meanwhile, the consumer staples sector (-2.0%) finished with the widest loss, with Costco (COST 956.32, -38.88, -3.91%) disappointing investors after posting a mixed earnings report, while shares of Clorox (CLX 90.02, -6.18, -6.42%) plummeted after the company announced that CEO Linda Rendle would step down for health reasons.

Weakness across mega-cap stocks outside of the technology sector weighed on the communication services (-1.7%) and consumer discretionary (-1.1%) sectors, while the energy sector (-1.1%) finished lower as oil prices retreated.

Crude oil futures settled today's session $1.50 lower (-1.7%) at $87.42 per barrel amid optimism around a U.S.-Iran peace agreement. President Trump said on Truth Social earlier in the day that he was in a meeting in the Situation Room to finalize a decision regarding the memorandum of understanding that would extend the ceasefire and outline the next steps for nuclear negotiations, but the meeting concluded without a decision being announced.

Overall, today's session reinforced the market's strong upward momentum, even as participation remained relatively narrow beneath the surface. Continued leadership from technology and software stocks, combined with easing oil prices and optimism surrounding a potential U.S.-Iran agreement, helped push the major averages to another round of record highs heading into the weekend.

U.S. Treasuries finished the week on a mostly higher note, though a slight dip in the long bond prevented the complex from recording a perfect week. The 2-year note yield settled downone basis point to 4.01% (-11 basis points this week), and the 10-year note yield finished unchanged at 4.45% (-11 basis points this week). 

• Russell 2000: +17.6% YTD
• Nasdaq Composite: +16.1% YTD
• S&P Mid Cap 400: +12.7% YTD
• S&P 500: +10.7% YTD
• DJIA: +6.2% YTD

Reviewing today's data:

• May Chicago PMI expanded to 62.7 (Briefing.com consensus 49.5), from the prior reading of 49.2.
• Advance International Trade in Goods decreased to -$82.4 billion, from an upwardly revised prior level of -$85.3 billion (from -$87.9 billion).
• Advance Wholesale Inventories increased 0.5%, from an upwardly revised prior increase of 1.5% (from 1.3%).
• Advance retail inventories increased 0.7%, from a prior increase of 0.7%.