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Market Recap
WEEK OF MAY. 18 THROUGH MAY. 22, 2026
It was another positive week for US equities, with the Dow Jones Industrial Average (^DJI) leading the way, gaining +2.13% to close at 50,579.70 — hitting a fresh all-time closing high on Friday. The S&P 500 (^SPX) rose +0.88% to 7,473.47, notching its eighth consecutive weekly gain, the longest such streak since a nine-week run ending in December 2023. The Nasdaq Composite (^IXIC) added +0.45% to close at 26,343.97
The dominant story of the week remained the US-Iran conflict and its impact on oil markets. The week began with heightened tensions after drone attacks struck a UAE nuclear plant and Saudi Arabia intercepted drones from Iraqi airspace (37). President Trump warned Iran that the "clock is ticking" and initially threatened to resume large-scale strikes if a peace deal wasn't reached within days (33).
However, as the week progressed, diplomatic momentum built. Trump postponed a planned Tuesday attack at the request of Gulf state leaders, citing "serious" ongoing negotiations (34). A Qatari negotiating team arrived in Tehran on Friday, and Pakistan's army chief headed to Iran to help mediate (2). Still, significant disagreements remain over Iran's uranium enrichment program and control of the Strait of Hormuz (3).
The diplomatic progress drove a dramatic decline in crude prices over the week. WTI Oil Price fell from around $107 at the start of the week to settle near $96.30 on Friday, while Brent Oil Price dropped from above $111 to around $103.37 (4).
This week features a shortened trading week with US markets closed Monday for Memorial Day. Key data includes the April personal consumption expenditures (PCE) index — the Fed's preferred inflation measure — on Friday, along with May consumer confidence, April new home sales, and the second revision to Q1 GDP. Earnings are expected from Costco Wholesale (COST), Dell Technologies (DELL), and Salesforce (CRM)
