S&P futures are up 0.6% Tuesday morning after U.S. equities finished higher last week, with the S&P 500 notching an eighth straight weekly gain, its longest winning streak since 2023. Semis and memory continued to lead, while quantum computing, most-shorted names, off-price retail, homebuilders, banks, airlines, and pharma also outperformed. Global markets are mixed, with Asia mostly lower in choppy trading and Europe down roughly 0.8%. Treasuries are rallying, with yields down 5–6 bp, the dollar is off 0.15%, gold is little changed, silver is slightly higher, Bitcoin futures are down 0.8%, and WTI crude is down 3.6%.
The setup is risk-on as oil and yields move lower. Markets are focused more on reported diplomatic progress in the Middle East than the latest military flare-up, which included U.S. and Israeli strikes on Iranian vessels and targets in the Strait of Hormuz. U.S. officials framed the strikes as defensive, while weekend headlines pointed to progress on a framework to end the Iran war and reopen Hormuz. However, Trump said the U.S. will not rush into a deal, and nuclear issues remain a key sticking point.
Broader market themes remain familiar: expanding earnings strength and the AI capex boom are the main bullish supports, while structural upward pressure on sovereign yields, stretched AI/momentum positioning, weaker mechanical support, and macro shorts near 10-year highs remain key risks. Other concerns include a depressed equity risk premium, fading tax-refund support, shrinking real wages, a flattening yield curve, and the potential for Taiwan to become the next geopolitical flashpoint.
Economic Calendar
Today brings March FHFA and Case-Shiller home price data, May Conference Board consumer confidence, and Dallas Fed manufacturing. Treasury will sell $69B of 2-year notes.
Wednesday includes Richmond Fed manufacturing, a $70B 5-year note auction, and remarks from Logan, Cook, Jefferson, and Goolsbee.
Thursday is the key macro day, with April personal income and spending, including PCE inflation, revised Q1 GDP, initial claims, durable goods orders, and new home sales. Treasury will also sell $44B of 7-year notes, with Williams, Musalem, and Barkin scheduled to speak.
Friday brings Fedspeak from Schmid, Bowman, Paulson, and Daly.
U.S. equities finished higher Friday, though off best levels, with the Dow up 0.58%, S&P 500 up 0.37%, Nasdaq up 0.19%, and Russell 2000 up 0.91%. Stocks gained for a third straight session, while the S&P 500 capped an eighth straight weekly advance, its longest winning streak since 2023, and finished roughly 0.3% below its record close. Equity resilience came despite renewed upward pressure on short-end rates after hawkish Waller comments and a jump in University of Michigan inflation expectations. Final May consumer sentiment was revised down to 44.8, a fresh record low, while one-year inflation expectations rose to 4.8% and longer-run expectations increased to 3.9%. Treasuries were mixed with curve flattening; the 2-year yield rose 6 bp to 4.12%, while the 10-year was flat at 4.56% and the 30-year fell 2 bp to 5.07%. The dollar was little changed, gold fell 0.8%, Bitcoin futures declined 2.5%, and WTI crude finished little changed in choppy trading.
Sector performance was mostly positive. Healthcare led, up 1.19%, followed by Utilities +0.80%, Industrials +0.69%, Technology +0.52%, Energy +0.44%, Materials +0.35%, Financials +0.33%, Consumer Discretionary +0.20%, and Real Estate +0.10%. Consumer Staples slipped 0.09%, while Communication Services was the weakest sector, down 0.68%. Momentum was higher, with semis and memory strong overall, while tech hardware, software, larger-cap banks, pharma/biotech, Medicaid MCOs, aluminum, steel, airlines, auto suppliers, quantum computing, retail favorites, growth, and small caps outperformed. Laggards included China tech, staples retailers, REITs, QSRs, entertainment, toys, and housing-linked retail.
Information Technology
- WDAY +5.2%: Q1 earnings, revenue, operating margin, free cash flow, and billings beat expectations. Management cited the strongest Q1 ACV growth in five years, AI traction, and better operating-margin guidance.
- ZM +9.2%: Q1 EPS, revenue, and operating income beat; FY27 guidance was raised, the buyback authorization was increased by $1B, and AI monetization was highlighted.
- AMD +4.0%: Announced plans to invest $10B with Taiwanese partners to boost CPU production for next-generation AI infrastructure. CEO Lisa Su said the global CPU market could grow more than 35% annually.
- TXN +3.6%: Upgraded to buy at Seaport Research, which cited rising power demand and increasing per-rack electrical intensity in data centers.
- Semis / memory: Outperformed again as AI compute and infrastructure demand remained the key market theme.
Communication Services
- IMAX +15.5%: Reportedly exploring a sale and has approached entertainment companies as potential buyers.
- TTWO -4.4%: Fiscal Q4 net bookings and EPS beat on strength in mobile, GTA, and Red Dead Redemption, but full-year guidance missed. GTA VI remains on track for a November 19 release.
- China tech: Lagged on ADR regulation concerns, contributing to Communication Services underperformance.
Consumer Discretionary
- ROST +8.1%: Q1 revenue, comps, margins, and EPS beat on strong traffic and merchandising traction. Comps rose a record 17%, Q2 guidance topped consensus, and FY26 guidance was raised.
- DECK: Mixed reaction; Q4 was helped by DTC and international strength, but investors scrutinized FY27 margin outlook and domestic growth issues.
- SG +8.9%: Upgraded to overweight at JPMorgan, which cited encouraging executive visits, new-product adoption, and traffic reinvestments.
- BJ -8.3%: Q1 earnings and revenue beat, but comps ex-fuel were slightly light. Gross margin declined amid price investments, and FY EPS guidance was reaffirmed.
- Housing-linked retail / QSRs / toys: Lagged within the broader consumer complex.
Consumer Staples
- FLO +13.3%: Q1 earnings and adjusted EBITDA margin beat, with revenue in line. Management highlighted premium bread and cake strength, and FY EPS guidance midpoint came in ahead of Street expectations.
- Staples retailers: Underperformed, weighing on the sector.
Energy
- Energy +0.44%: Finished higher despite choppy crude trading, with WTI up only 0.1% on the day.
Financials
- Large-cap banks: Outperformed as the group benefited from higher short-end yields and broader risk appetite.
- Financials +0.33%: Finished modestly higher, though the sector was not a primary driver of the index advance.
Healthcare
- MRK +5.6%: Partner Kelun Biotech reported positive interim Phase 3 data in China for sacituzumab tirumotecan plus Keytruda, showing a 65% reduction in risk of disease progression versus Keytruda alone.
- SMMT -4.9%: Downgraded to neutral at HC Wainwright, which cited HARMONi-2 data comparisons versus Merck’s combo.
- INSP -2.0%: Downgraded to underperform at BofA on higher estimate risk tied to coding concerns.
- Pharma / biotech / Medicaid MCOs: Helped Healthcare lead sector performance.
Industrials
- BAH: Helped by better margins and momentum in Civil.
- GNRC +9.0%: Upgraded to buy at Jefferies, which cited upcoming data-center updates as a likely positive catalyst.
- Industrials +0.69%: Outperformed, helped by select defense, infrastructure, and AI-power-adjacent names.
Materials
- AA +7.7%: Upgraded to buy at UBS, which cited expectations for higher aluminum prices tied to supply disruptions.
- Aluminum / steel: Outperformed as Materials gained 0.35%.
Eco Data Releases | Monday May 26th, 2026
S&P 500 Constituent Earnings Announcements | Monday May 26th, 2026
Data sourced from FactSet Research Systems Inc.
