Records, Relief, and a Market Still Willing to Climb

Week Ending May 29, 2026

Last week felt like one of those weeks where the market wanted to move higher and kept finding reasons to do it.

Even though it was a shorter trading week after the Memorial Day holiday in the U.S., there was still a lot going on. Investors stayed focused on artificial intelligence, chip stocks kept leading the way, and optimism around a possible Middle East ceasefire helped calm some of the fear that had been building around oil and inflation. By the time the week ended, the major U.S. indexes were once again sitting at record highs.

What stood out most to me was this: the market is still showing a strong willingness to reward leadership. Investors are not throwing money at everything equally, but they are still very comfortable owning the parts of the market where momentum, earnings strength, and long-term growth stories feel the most believable.

Market Overview

Weekly Market Performance (May 25 to May 29, 2026)

• S&P 500: +1.43%
• Nasdaq Composite: +2.39%
• Dow Jones Industrial Average: +0.90%
• MSCI EAFE Index: +0.99%
• S&P/TSX Composite Index: approximately +0.8%

In the U.S., technology continued to do the heavy lifting, especially early in the week, as AI enthusiasm pushed the S&P 500 and Nasdaq to fresh record highs. The Dow also joined the move, although leadership rotated a bit as the week went on, with healthcare and consumer names helping support blue-chip stocks midweek. In Canada, the TSX also had a constructive week and finished modestly higher from the prior Friday, supported by strength in technology and materials even as energy lagged.

Why the Market Kept Moving Higher

This was another week where investors had every reason to be cautious, but they leaned optimistic instead.

The biggest support was still the same story we have seen for a while now: AI. Chipmakers and large technology companies remained at the center of the rally, and that strength spilled over into the broader market. At the same time, headlines suggesting progress toward a U.S.-Iran agreement helped ease some of the pressure around oil prices and inflation fears. That combination gave investors enough confidence to keep buying.

Midweek, the tone shifted a little. The AI trade took a breather, but that did not derail the rally. Instead, money rotated into more traditional blue-chip areas, which helped lift the Dow to another record close. To me, that matters. It suggests this rally is not only about one narrow pocket of the market anymore. Leadership still matters, but the market also showed signs that it can broaden out when needed.

By Friday, the story was simple: oil prices were falling, technology was still acting well, and investors were willing to end both the week and the month on a strong note. That helped push all three major U.S. averages to fresh record intraday and closing highs, with the Dow moving above 51,000 for the first time.

The S&P’s Winning Streak Still Matters

One important detail from last week is that the S&P 500 extended its winning streak to nine straight weeks.

That does not guarantee anything about what comes next, of course. Markets never move up in a straight line forever. But it does tell us something useful about investor behavior right now. When markets keep rising despite inflation worries, geopolitical risk, and plenty of reasons to hesitate, it usually means investors still believe the bigger trend is working.

And right now, they clearly do.

What the Economic Data Was Really Saying

The economic data last week was mixed, but not bad enough to shake confidence.

The Fed’s preferred inflation measure, the PCE index, rose 0.4% in April and 3.8% from a year earlier. That is still too high for anyone hoping inflation is fully behind us, but it also was not worse than feared. At the same time, first-quarter GDP was revised down to 1.6%, which tells us the economy is still growing, just at a slower pace than originally thought. In plain English, the message was: inflation is still uncomfortable, growth is still positive, and neither number was dramatic enough to knock investors off course.

There were some crosscurrents underneath the surface too. Manufacturing got a boost from a sharp jump in durable goods orders, helped heavily by aircraft demand, while housing was softer as new home sales fell in April. So this was not a week where every piece of the economy pointed in the same direction. It was more a reminder that the economy is still moving forward, but not evenly.

What Canada Was Telling Us

Canada had a more mixed story, but not a weak one.

The TSX still finished the week higher, helped by gains in technology and metals. Celestica was one of the standout movers, and gold-related shares also provided support. That said, Canada’s economic backdrop was less encouraging. First-quarter GDP unexpectedly contracted at a 0.1% annualized pace, marking two straight quarters of annualized decline, which is why some economists began using the phrase “technical recession.” The good news is that an early estimate for April pointed to a rebound, so this may not be as clear-cut as the headline suggests.

At the same time, Canada’s big banks gave investors something better to focus on. BMO, Scotiabank, National Bank, and TD all reported results that were generally better than expected, helped by domestic banking strength, capital markets activity, and stronger net interest income. That mattered because financials are such an important part of the Canadian market. Even with economic uncertainty still hanging around, the banks reminded investors that parts of the Canadian economy are still showing resilience.

Looking Ahead

This week gives markets another real test.

Investors will be watching fresh data on manufacturing, job openings, private hiring, services activity, jobless claims, productivity, and of course Friday’s employment report. If last week was about confidence holding together, this week is about whether the economy gives investors a reason to keep that confidence going.

We also have another group of earnings reports that could matter, especially in technology and cybersecurity. Broadcom and CrowdStrike stand out the most to me because they both tie back into areas investors have been rewarding all year: AI infrastructure, enterprise spending, and digital security.

If I had to sum up the setup in one sentence, it would be this: the market still wants to move higher, but it will need the growth story to keep showing up in both earnings and economic data.

As always, I do not think the takeaway is to chase whatever just had a strong week. The better lesson is that leadership still matters, diversification still matters, and markets often stay more resilient than people expect when investors feel they still have enough reasons to believe.

This Week: Key Economic Data

Monday, June 1st

• ISM Manufacturing
• Construction Spending
• Auto Sales
• Minneapolis Fed President Neel Kashkari speaks in South Korea

Tuesday, June 2nd

• Job Openings
• Cleveland Fed President Beth Hammack speaks

Wednesday, June 3th

• ADP Employment Report
• Factory Orders
• ISM Services
• Fed Beige Book
• Fed Governor Michael Barr speaks

Thursday, June 4th

• Weekly Jobless Claims
• Productivity
• Richmond Fed President Tom Barkin speaks

Friday, June 5th

• Federal Employment Report
• Consumer Credit

This Week: Companies Reporting Earnings

Monday, June 1st

• Hewlett Packard Enterprise Company (HPE)

Tuesday, June 2nd

• Palo Alto Networks, Inc. (PANW)

Wednesday, June 3th

• Broadcom Inc. (AVGO)
• CrowdStrike (CRWD)
• Medtronic (MDT)

Thursday, June 4th

• Ciena Corporation (CIEN)

"Time is the only critic without ambition."
– John Steinbeck

It traveled from Kentucky to Texas in three days, and it did so while staying in a corner. What is it?

_{Last Week's Riddle: At times it begs to be answered, sometimes it interrupts you, but it will never ask you a question. What is it?
Answer: A phone.}

Oh, to be as comfortable as Taz.

Footnotes and sources:

1. WSJ.com, May 29, 2026
2. Investing.com, May 29, 2026
3. CNBC.com, May 26, 2026
4. CNBC.com, May 27, 2026
5. WSJ.com, May 28, 2026
6. CNBC.com, May 29, 2026
7. WSJ.com, May 28, 2026
8. KPMG.com, May 28, 2026
9. Realtor.com, May 28, 2026
10. IRS.gov, January 22, 2026
11. Coalition to Strengthen America’s Healthcare, February 19, 2026

Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.

The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. The Nasdaq Composite is an index of the common stocks and similar securities listed on the Nasdaq stock market and considered a broad indicator of the performance of stocks of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.

U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.

Please consult your financial professional for additional information.