Your Capital Markets Snapshot: Eight-Week Win Streak as Peace Talks Lift Outlook

Courtesy of Allen Davis, CFP®

US markets posted their eighth consecutive weekly gain, marking the longest winning streak since December 2023. The S&P 500 rose 0.9% driven by continued with enthusiasm for artificial intelligence and progress in Middle East peace negotiations fueling optimism and offsetting persistent inflation concerns. Treasury yields movements were mixed during the week, with the 2-year yield rising while the 10-year and 30-year yields declined, as markets repriced Federal Reserve policy expectations amid stronger macroeconomic data. WTI crude oil fell 8.4% to $96.60 per barrel as momentum built around Iran peace talks, while gold declined 0.9% pressured by elevated oil prices, rising yields, and a stronger dollar. Consumer sentiment plunged to a record low of 44.8 in May, down from 49.8 in April, as consumers cited high prices as eroding their finances. Initial jobless claims came in at 209,000 for the week ending May 21, indicating labor market resilience despite mounting consumer anxiety over gasoline prices and the ongoing Middle East conflict. Markets navigated a complex environment where strong corporate earnings and AI enthusiasm supported equities even as inflation concerns and geopolitical uncertainty weighed on consumer confidence and bond markets.