Weekly Commentary (05/26/2026) - Your Love Keeps Lifting Me Higher and Higher

Weekly Commentary (05/26/2026) - Your Love Keeps Lifting Me Higher and Higher

Last week the stock markets continued their record gains as robust earnings reports quenched investors’ appetites, despite a weaker-than-expected reading on consumer confidence.

Index / Commodity    Change Last Week    Level
DJIA    2.18%    50,580
S&P 500    0.91%    7,473
NASDAQ    0.48%    4,069
Russell 2000    2.75%    2,869
MSCI EAFE    2.17%    3,087
MSCI EM    1.11%    1,686
Bloomberg Aggregate    0.26%    2,338
10 Year Treasury    -3 bps    4.56%
Oil    -4.38%    $96.60
Gold    -0.76%    $4,521.00
For the first quarter, 90% of S&P 500 companies posted an average earnings gain of nearly 29% over the same quarter a year earlier, according to FactSet. President Trump announced that the U.S. is “in the final stages of negotiations with Iran which seemed to both lift investors’ optimism and help push the price of oil down to $96.60/bbl.

On the economic front, weekly jobless claims fell by 3,000 to 209K vs. consensus of 212K. The University of Michigan’s Index of Consumer Sentiment came in at 44.8, below the 48.2 consensus. Additionally, the S&P US May Manufacturing Purchasing Managers’ Index (PMI) rose to 55.3 from 54.5 and was well above the 53.7 forecast. Pending home sales increased 1.4% in April, slightly off the March pace of 1.5%, and housing starts declined 2.7% to 1.47 million – still better than the 1.42mm median forecast. The 30-year mortgage rate listed on wsj.com rose to 6.51% up from the previous week’s 6.36%, the highest level since last August. (Ycharts I:US30YMR)

The yield on the 10-year Treasury has risen since the beginning of March from about 4.04% to as high as 4.7% before settling at 4.56% last week, The 30-year Treasury yield (hovering around 5%) has risen to its highest level since June 2007. Bond investors seem more jittery, to say the least.

During this holiday shortened week, the personal consumption expenditures price index (PCE), the inflation index favored by the Federal Reserve for measuring inflation, will be announced. Economists expect the core rate to come in at 3.3% against their ~2% target.  Hotter than expected inflation data typically keeps pressure on policymakers to further delay any reduction in overnight interest rates. The newly appointed Federal Reserve chair, Kevin Warsh, will have his work cut out to address the economy’s growth, the labor market and inflation outlook.

With lofty valuations, weakening economic news, and higher for possibly longer interest rates, we urge investors to remain within their long-term asset allocation strategy ranges and maintain high quality holdings. 
“It is foolish and wrong to mourn the men who died. Rather, we should thank God that such men lived.” – General George S. Patton

Sources Market data: J.P. Morgan Asset Management, Weekly Market Recap, May 25, 2026. Index returns, yields, key rates, and commodity prices as cited in the Weekly Data Center. All equity returns represent total return for stated period. Oil and Gold: Wall Street Journal Markets Digest, May 26, 2026. Economic data: MarketWatch.com. Charts and portfolio data: YCharts.com.
NDS Wealth Advisors believes these sources are reliable but cannot guarantee the accuracy or completeness of third-party data and assumes no liability for errors or omissions.
Disclosures This material is for informational and educational purposes only and should not be relied upon as investment, legal, or tax advice, or a recommendation of any particular security, strategy, or investment product. Any economic forecasts or market outlooks expressed herein are forward-looking statements, subject to change without notice, and may not materialize. Investors cannot invest directly in an index. Index returns do not reflect the deduction of fees, commissions, or expenses, which would reduce overall performance. Past performance does not guarantee future results. Diversification does not guarantee investment returns and does not eliminate the risk of loss. This material does not consider the investment objectives, financial situation, or unique needs of any individual investor. Consult your financial advisor before making any investment decisions.