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 showed inflation remains elevated, with the PCE index rising 3.8% year-over-year. Fed officials signaled a hawkish tilt, indicating readiness to raise rates if inflation persists. GDP growth was revised down to 1.6%, while durable goods orders surged 7.9%.
European Market Insights
The pan-European STOXX Europe 600 Index advanced 0.14%. Investors looked for signs of progress on a U.S.-Iran agreement. The ECB warned of persistent supply shocks, and Germany's unemployment rate fell unexpectedly.
Key Developments
Italy's GDP growth was revised upward, and car registrations in the EU grew 5.1% year-over-year. However, UK shop price inflation rose more than expected, driven by high shipping and raw material costs.
Japan Market Highlights
Japan's equity markets surged, with the Nikkei 225 Index rising 4.72%. The positive sentiment was driven by U.S.-Iran developments. However, soft inflation data complicated the Bank of Japan's rate-hike considerations.
Market Performance
The yield on the 10-year Japanese government bond declined, reflecting easing inflation concerns. The yen remained stable amid intervention vigilance.
China Market Overview
China's equities were mixed, with the CSI 300 Index up 0.97% and the Shanghai Composite Index down 1.08%. Industrial profits grew 24.7% year-over-year, but regulatory pressures on offshore brokerages weighed on market sentiment.
Key Issues
The CSRC intensified its crackdown on illegal cross-border securities activities, impacting offshore-listed Chinese brokerage shares.
Other Key Markets
South Korea
South Korean equities were led by a semiconductor rally, reflecting global AI demand. The Bank of Korea maintained its rate but signaled a hawkish shift.
South Africa
The South African Reserve Bank raised the repo rate to 7.0% due to rising inflation pressures from the Iran conflict, while also revising its growth forecasts downward.
Market Summary Table
| 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% |
This material is provided for informational purposes only and is not intended to be investment advice.