Written by Amaury de Barros Conti, Partner | Vice President Investments
WHAT MOVED MARKET LAST WEEK
Markets closed the week higher, supported by a combination of moderating inflation signals, incremental progress on geopolitical tensions, and continued strength in AI-driven earnings. While volatility remains beneath the surface, particularly around monetary policy, energy markets, and geopolitical developments, the overall backdrop reflects a market that may be increasingly willing to price in a soft-landing scenario. Importantly, market leadership remains relatively concentrated in technology and AI beneficiaries, reinforcing a narrow but powerful driver of equity returns.
U.S. equities advanced across the board, with the S&P 500 rising 1.4%, the Nasdaq gaining 2.4%, and the Dow adding 0.9% for the week. This capped a strong month of May, during which the S&P 500 climbed more than 5% and the Nasdaq surged over 8%, as per Bloomberg data.
Source: Bloomberg Finance as of May 29, 2026.
- A key macro catalyst was the indication of a continued de-escalation narrative in the Middle East. Reports that a framework agreement with Iran is “largely negotiated” appears to have helped reduce perceived tail risks, particularly around global energy supply chains. This was reflected in commodity markets, where Brent crude fell nearly 20% in May, its sharpest monthly decline since 2020, which may, if sustained, provide meaningful relief to inflation expectations and support both equity and fixed income markets.
- From a rates perspective, Treasury yields declined modestly, with the 10-year falling to ~4.44% from 4.56% the prior week. The move coincides with a combination of softer inflation data, declining oil prices, and continued strong demand for duration, including a well-received 7-year auction. Credit markets also participated, with high yield generating positive, though somewhat moderated, returns as investors weighed geopolitical optimism against persistent Fed hawkishness.
- The inflation backdrop showed tentative signs of improvement, though not enough to materially shift Federal Reserve posture. Core PCE rose 0.2% month-over-month in April, below expectations, while headline PCE increased 0.4%, down from 0.7% in March. On a year-over-year basis, however, both core (3.3%) and headline (3.8%) PCE measures remain elevated, highlighting the persistence of inflationary pressures.
- Consumer activity remains resilient but uneven. Personal spending rose 0.5% in April, while income was flat, suggesting some sensitivity to real income growth. Meanwhile, Q1 GDP was revised down to 1.6% (from 2.0%), driven by softer consumption and investment data, though still an improvement from late 2025 levels.
LOOKING AHEAD
- The coming week will likely center on labor market data, with May nonfarm payrolls expected to show ~93,000 job gains and an unemployment rate holding at 4.3%. Investors will also monitor ISM manufacturing and services data, JOLTS job openings, and the Fed’s Beige Book for incremental insights into economic momentum and labor market cooling.
- On the earnings front, it is anticipated that Broadcom will be closely watched for confirmation of AI infrastructure demand trends, alongside reports from CrowdStrike, Hewlett Packard Enterprise, and Palo Alto Networks.
- Finally, the AI narrative will remain front and center with major industry events expected to deliver updates on semiconductors, data centers, software ecosystems, and robotics.
Amaury de Barros Conti
Partner | Vice President Investments
General Disclaimer: This material is provided for informational purposes only and should not be construed as investment, legal, or tax advice. Sendero Wealth Management, LLC is an SEC-registered adviser; registration does not imply skill. Views are as of the date noted, may change without notice, and forward-looking statements are not guarantees of future results. Data from third-party sources is believed to be reliable but is not guaranteed; indices are unmanaged and not available for direct investment. Past performance is not indicative of future results. All investments involve risk, including possible loss of principal. Consult your professional advisers regarding your specific circumstances. Review our Form ADV & Form CRS here.
