Global Markets Weekly Update - May 29, 2026

U.S. Market Overview

Major U.S. stock indexes rose during the holiday-shortened week, with several benchmarks closing at record highs. Investor sentiment was buoyed by hopes for a U.S.-Iran peace agreement, falling oil prices, and momentum in AI-linked stocks. The Nasdaq Composite led gains, while the Dow Jones Industrial Average lagged but still rose 0.9%.

Key Economic Indicators

April PCE data indicated inflation remains elevated, with the PCE index rising 3.8% year-over-year. Fed officials signaled a hawkish tilt, suggesting potential rate hikes if inflation continues to rise. GDP growth was revised down to 1.6%, while durable goods orders surged by 7.9%.

Market Performance

Index	Friday's Close	Week's Change	% Change YTD
DJIA	51,032.46	452.76	6.18%
S&P 500	7,580.06	106.59	10.73%
Nasdaq Composite	26,972.62	628.65	16.05%
S&P MidCap 400	3,725.12	51.71	12.71%
Russell 2000	2,919.36	50.13	17.63%

International Markets

Europe

The pan-European STOXX 600 Index advanced 0.14%. The ECB warned of persistent supply shocks, and Germany's unemployment rate fell unexpectedly. Italy's GDP growth was revised upward, while UK shop price inflation rose more than expected.

Japan

Japan's equity markets surged, with the Nikkei 225 Index rising 4.72%. Soft inflation data complicated the BoJ's rate-hike calculus, while JGB yields declined amid easing inflation concerns.

China

China's equities were mixed, with industrial profits growing significantly but regulatory pressures on offshore brokerages weighing on sentiment. The CSI 300 Index rose 0.97%, while the Shanghai Composite fell 1.08%.

Other Key Markets

South Korea's market was driven by semiconductor strength, while South Africa's Reserve Bank turned hawkish due to rising inflation pressures linked to the Iran conflict.

Conclusion

The week was characterized by optimism surrounding geopolitical developments, particularly the U.S.-Iran negotiations, which positively influenced market sentiment across various regions.