Monthly Market Update – May 2026

By Simmons Investment Advisors on June 1, 2026

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Headlines From Last Month:

• US stocks continued to move higher in May despite geopolitical issues and higher oil prices. Positive corporate earnings and outlooks have been driving stocks upward.
  • The S&P is on a nine-week winning streak.
  • The Dow closed above 51,000 for the first time ever.
  • All 3 major US indices finished the month at all-time highs.
• The Nikkei rallied another 11.88% last month, closing above 65K on May 25th.  It is now up 31.76% for the year.
  • Kevin Warsh was confirmed as the next Federal Reserve chair after the Senate voted on May 13^th to become the 17^th Fed chair of the modern banking era.
  • Former Chair Powell will stay on at the Fed, with 2 years left in his term as governor.
• Iran:
  • The war with Iran has reached the three-month mark.
  • The US and Iran have been negotiating a memo of understanding with the hope of extending the ceasefire by 60 days.
• President Trump traveled to China mid-month to meet with President XI Jinping for a two-day summit. Topics discussed were Iran, AI, and trade.
• The price of Oil (WTI spot) dropped -16.86% in May, but is still up over 52% in 2026, closing the month at $88.42 a barrel:
  • The downward pressure on the price of oil was driven by optimism surrounding a tentative US-Iran ceasefire agreement that could lead to the reopening of the Strait of Hormuz.
  • The national average price of gas per gallon rose to $4.43 despite the drop in oil, up $0.13 from a month ago.
• Metals were mixed in May:
  • Gold (NY Spot) fell -1.94%, still up 5.04% for the year.
  • Silver rose 3.05%. Year-to-date, it is now up 5.79%.
• Mortgage Rates (30-year fixed, conforming) rose from 6.38% to 6.56%.
• Sports:
  • Golden Tempo won the 152^nd running of the Kentucky Derby at Churchill Downs, coming from last early in the race. The horse’s trainer, Cherie DeVaux became the first female trainer to win. Also, sibling jockeys Jose and Irad Ortiz finished 1^st and 2^nd, respectively.
  • Napolean Solo won the Preakness Stakes on May 16^th in a minor upset.
  • NASCAR legend Kyle Busch passed away unexpectedly at the age of 41.
  • The NY Knicks advanced to the NBA Finals for the first time since 1999.  They will face the San Antonio Spurs for the championship.
  • In Paris, top seeds Jannik Sinner and Novak Djokovic both lost in early rounds at Roland Garros.
• Other news:
  • CNN founder, Ted Turner died on May 6^th at the age of 87.

• Economic Data:
  • GDP for Q1 was revised down from the previously reported 2.0% to an annualized rate of 1.6%, lower than the 2.0% estimate.
  • Employment/Unemployment:
    • US Nonfarm Payrolls rose by 115K in April, above the expected rise of 50K ⁽ⁱ⁾.
    • Unemployment remained at 4.3%, as anticipated ⁽ⁱ⁾.
  • Retail Sales rose 0.5% in April, in-line with estimates, and up 4.9% from a year ago ⁽ⁱ⁾.
  • Inflation:
    • Consumer Price Index:
      • CPI rose 0.6% in April, as expected, and 3.8% on an annual basis, above the expected rise of 3.7% ⁽ⁱ⁾.
      • Core CPI (excludes food & energy) rose 0.4%, as anticipated, and 2.8% annually, higher than estimates of 2.7% ⁽ⁱ⁾.
    • Producer Price Index:
      • PPI jumped 1.4 % in April, vs the expected rise of 0.5%. On a 12-month basis, it increased 6.0% versus estimates of 4.8% ⁽ⁱ⁾.
      • Core PPI (excludes food and energy) rose 1.0%, vs estimates for a rise of only 0.3%, and up 5.2% year over year vs estimates for 4.3% ⁽ⁱ⁾.
    • Personal-Consumption Expenditures Index:
      • PCE rose 0.4% last month, vs estimates of 0.5%, and 3.8% on an annual basis, as anticipated ⁽ⁱ⁾.
      • Core PCE (excludes food and energy prices) rose 0.2% in April, just below the expected rise of 0.3%, and 3.3% year-over-year, as estimated ⁽ⁱ⁾.
    • Personal Income was unchanged for April, below estimates for 0.4% ⁽ⁱ⁾.
    • Personal Spending rose another 0.5% for the month, as anticipated ⁽ⁱ⁾.

US Equities:

• Sector performance:
  • Info Tech jumped sharply in May, up 15.91%. Consumer Discretionary gained 2.56% and Health Care rose 2.31%. On the downside, Energy lost -6.08%, Utilities fell -5.51 and Consumer Staples fell -3.29% ^(vii).
  • Year-to-date, Energy is up 24.38%, Info Tech by 23.54%, Industrials by 11.45%, Materials by 11.24%, Real Estate by 9.42%, Communication Services by 9.01%, Consumer Staples by 6.54%, Consumer Discretionary by 3.85%, and Utilities by 3.64%. On the downside, Health Care is down -3.66% and Financials are down -6.03% ^(vii).
• Growth vs Value:
  • Growth (Russell 1000 Growth Index) rallied another 6.94% while Value (Russell 1000 Value Index) gained only 2.76%. For the year, Growth is up 7.98% and Value is up 12.83%.
• Small-cap stocks (Russell 2000 Index) gained 4.27% in May, up 17.62% in 2026.

• Monthly performance, calculated on a price-return basis:
  • Dow gained 2.71%
  • S&P 500 rallied 5.15%
  • Nasdaq jumped 8.33%
• Year-to-Date performance, calculated on a price-return basis:
  • Dow is up 6.18%
  • S&P 500 is up 10.37%
  • Nasdaq is up 16.05%

US Fixed Income – Yields continued to rise last month:

• Yields on US Treasuries at the end of May:
  • 1 year – 3.77% ^(iv)
  • 2 year – 4.00% ^(iv)
  • 10 year – 4.43% ^(iv)
• As a point of reference, at March month-end, yields were at:
  • 1 year – 3.72% ^(iv)
  • 2 year – 3.88% ^(iv)
  • 10 year – 4.38% ^(iv)

Regards,

Mike & Steve

DISCLOSURE: All data is as of previous month-end (May 31^st, 2026).  Sources include www.cnbc.com (i), https://www.cnn.com/business (ii), https://finance.yahoo.com (iii), other public websites, Hightower Advisors, LLC (iv), FactSet (v), Barron’s (vi) and www.spglobal.com (vii).