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May 11, 2026
Good morning,
Markets
For the week ending 5/8/2026:
- The S&P 500 increased 2.3% to close at 7,398.93.
- The yield of the 10-year Treasury bond decreased from 4.38% to 4.36%.
- Oil decreased from $101.94 to 95.42.
- The CBOE Volatility Index (VIX) increased from 16.99 to 17.19.
- U.S. dollar currency exchange rates were:
- EUR/USD: 1.18 (USD weaker from a week ago)
- GBP/USD: 1.36 (USD weaker from a week ago)
- USD/JPY: 156.62 (USD weaker from a week ago)
Market Headlines
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Stocks Hit Record Highs (Again): The S&P 500 and Nasdaq notched their sixth consecutive week of gains, the longest winning streak since 2024, while both indexes climbed to fresh record highs. The Nasdaq surged 4.5%, the S&P 500 rose 2.3%, and the Dow Jones edged up 0.2%.
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Strong Jobs Report: Friday’s U.S. jobs report came in stronger than expected, with employers adding 115,000 jobs in April versus forecasts for roughly 60,000. The unemployment rate held steady at 4.3%, suggesting the labor market remains resilient even as hiring has slowed from last year’s pace. Investors responded positively to the report, with stocks pushing to yet another all-time high, due to eased fears of a sharp economic slowdown without signaling an overheating economy that could push the Federal Reserve toward more aggressive rate hikes.
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Earnings Remain Strong: Nearly 90% of companies in the S&P 500 have reported Q1 2026 earnings, and 84% of those companies have exceeded analysts’ expectations. While the recent spike in oil prices is only partially reflected in these results, as the Middle East conflict began late in the quarter, investors have responded positively to the strong earnings growth and corporate resilience displayed prior to the escalation in tensions.
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Ongoing Negotiations with the Middle East: Early in the week, optimism surrounding a possible ceasefire agreement and the reopening of the Strait of Hormuz helped drive oil prices lower and supported gains in global equities. However, that optimism faded as clashes resumed near the Strait of Hormuz and reports indicated negotiations remained fragile. Tensions escalated later in the week after U.S. warships reportedly came under attack from Iranian drones and missiles, prompting retaliatory U.S. strikes on Iranian targets near the Strait of Hormuz. Despite the renewed conflict, investors continued to monitor diplomatic developments closely, as both sides signaled interest in keeping negotiations alive.
Key Takeaway
While strong earnings and better-than-expected economic data have helped drive markets higher, the conflict in the Middle East continues to dominate headlines. On Monday, reports of renewed escalations in the region caused markets to dip following the prior week’s strong close. On Tuesday, however, optimism surrounding ongoing negotiations between the U.S. and Iran led to a decline in oil prices and gains in the stock market. As optimism around those negotiations gained momentum heading into Wednesday, markets rallied before cooling sentiment on Thursday caused a portion of Wednesday’s gains to be erased. To close the week, a strong jobs report and solid corporate earnings helped lift markets on Friday. Investors continue to focus on the broader economic fundamentals, as illustrated by the market recovery and rally since mid-April. However, day to day, its clear markets remain sensitive to developments surrounding tensions and negotiations involving Iran.
The Week Ahead: May 11 – 15
- Monday: Existing home sales
- Tuesday: Consumer Price Index (CPI), Monthly U.S. federal budget
- Wednesday: Producer Price Index (PPI)
- Thursday: Initial jobless claims, U.S. retail sales, Import price index, Business inventories
- Friday: Industrial production & capacity utilization
Until next week,
Weller Financial Group
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