Global Markets Weekly Update - May 22, 2026
U.S. Market Overview
Major U.S. stock indexes closed the week higher, with the Dow Jones Industrial Average reaching an all-time high. The S&P 500 Index marked its eighth consecutive week of gains, the longest winning streak since 2023. Small-cap and value stocks outperformed their large-cap and growth counterparts.
Investor sentiment improved mid-week, driven by strong earnings from NVIDIA and optimism surrounding AI stocks, despite ongoing geopolitical tensions in the Middle East.
Economic Indicators
The S&P Global May Flash PMI data indicated modest growth, with manufacturing activity strengthening while services softened. Inflation concerns were highlighted as input costs surged, and consumer sentiment hit a record low due to rising cost-of-living pressures.
Housing Market
The National Association of Home Builders reported a slight increase in the Housing Market Index, but it remained below neutral levels due to high mortgage rates and economic uncertainty. The average 30-year mortgage rate rose to 6.51%.
Global Market Performance
| Index | Friday's Close | Week's Change | % Change YTD |
|---|---|---|---|
| DJIA | 50,579.70 | 1,053.53 | 5.24% |
| S&P 500 | 7,473.47 | 64.97 | 9.17% |
| Nasdaq Composite | 26,343.97 | 118.83 | 13.35% |
| S&P MidCap 400 | 3,673.41 | 63.61 | 11.14% |
| Russell 2000 | 2,869.21 | 75.92 | 15.61% |
International Markets
In Europe, the STOXX Europe 600 Index rose by 3.00%, driven by hopes of de-escalation in the Middle East. The European Commission revised its growth forecasts downwards for the eurozone, citing geopolitical tensions.
Japan's markets rebounded, with the Nikkei 225 Index up 3.14%, supported by positive sentiment around U.S.-Iran negotiations. However, the yen weakened due to softer inflation data.
China's equities retreated as April activity data disappointed, raising concerns about growth and the need for stimulus.
Other Key Markets
Indonesia's central bank raised interest rates unexpectedly to stabilize the rupiah, while Türkiye faced a political shock that led to a sell-off in its markets.
This summary provides an overview of the key market insights and economic indicators affecting global markets as of May 22, 2026.