Weekend Update, June 1st, 2026

June 1, 2026

The Beat’s Go On-DELL

9-Week Streak, Dow Record, Growth Accelerates

Key Takeaways Last Week

As of Friday, May 29 closes, stocks hit records, AI-linked earnings did a lot of the lifting, oil fell sharply on U.S.-Iran truce hopes, and interest rates eased late in the week.

U.S. stocks rose for a ninth straight week. The S&P 500 gained +1.4%, the Dow rose +0.9%, the Nasdaq rose +2.4%, and the Russell 2000 gained +1.7%. Year to date, the S&P 500 is up +10.7%, the Dow +6.2%, the Nasdaq +16.1%, and the Russell 2000 +17.6%.

  • The Dow closed above 51,000 for the first time.
  • The S&P 500 and Nasdaq closed at fresh record highs.
  • Dell and NetApp drove the AI infrastructure rally after major earnings surprises.
  • Oil fell sharply below $90/bbl on U.S.–Iran peace-deal optimism, easing inflation fears.
  • April PCE inflation remained hot at 3.8% headline and 3.3% core, keeping the Fed cautious.

U.S. Stock Performance – Index and Sector Moves

Financial markets improved during the week ending 5/29/26.

The S&P 500 closed at 7,580.06, the Dow at 51,032.46, the Nasdaq at 26,972.62, and the Russell 2000 finished the week higher despite falling on Friday.

US Equities.

Source: Seeking Alpha

Sector leadership remained concentrated in technology, semiconductors, AI infrastructure, hardware, software, and cybersecurity. Technology was the primary driver of May’s rally, while many non-tech sectors lagged.

US Equity sectors.
Source: Seeking Alpha

AI Capex

AI infrastructure spending remains the dominant market driver. Dell’s AI-server revenue surged 757% year over year to $16.1B, while the company raised its full-year AI server revenue forecast to $60B.

The key debate remains whether hyperscaler AI capex eventually reduces free cash flow available for buybacks. For now, earnings growth and AI backlog are offsetting that concern, but investors are watching whether rising datacenter, memory, power, and networking costs pressure future shareholder returns.

S&P 500 Weekly Leaders and Laggards Ranked

Top Performers (WTD):

Rank, Stock, Weekly Return, Main Reason
1 Dell Technologies (DELL) +27.4% Blowout earnings and surging AI-server demand; management raised guidance.
2 Qualcomm (QCOM) +26.3% Continued strength in AI-enabled chips and positive semiconductor sector momentum.
3 Micron Technology (MU) +21.9% Strong demand for AI memory chips and favorable supply dynamics.
4 First Solar (FSLR) +19.4% Renewed interest in renewable-energy names and improving solar sentiment.
5 Skyworks Solutions (SWKS) +19.3% Broad semiconductor rally and optimism around AI-related electronics demand.

Bottom Performers (WTD):

Rank, Stock, Weekly Return, Main Reason
1 Clorox (CLX) -6.4% Defensive consumer staples lagged as investors rotated into growth and AI names.
2 ResMed (RMD) -6.3% Healthcare equipment weakness and risk-on market rotation.
3 Intel (INTC) -5.1% Despite broader chip strength, investors remain concerned about Intel’s competitive position versus AI-focused rivals.
4 Skyworks Solutions (SWKS) -4.4%* Appeared among daily losers late in the week after a strong run; weekly data still shows it among the biggest gainers overall.
5 Coherent (COHR) -4.1% Profit-taking after a massive multi-month rally in optical and AI infra-structure stocks.

Breadth & Participation

US Equity Factors.

Source: Seeking Alpha

Leadership remained narrow. The rally was still heavily concentrated in AI, hardware, semiconductors, software, and cybersecurity. The equal-weight market continued to lag the cap-weighted index, suggesting the market remains dependent on AI-linked leadership rather than broad sector participation.

International/Global

International markets were generally firmer as oil declined and investors grew more optimistic about a possible U.S.–Iran deal. Japan rallied, European markets rose, and global risk appetite improved. Global markets remain sensitive to U.S.–Iran negotiations, the Strait of Hormuz, oil prices, and China/technology trade issues.

Global Equities.

Source: Seeking Alpha

Volatility & Risk Sentiment

Risk sentiment improved as bond-market pressure eased and earnings remained strong.

VIX: 15.32, 9-day vol dropped under 13 while 2-month vol is near 21.

Bonds, Credit & Interest Rates

Treasury yields fell during the week as oil dropped and U.S.–Iran deal hopes improved. The 10-year Treasury ended near 4.45%, while the 2-year closed near 4.01%.

30-year Treasury: below 5.00% late week /

Economic Data, Monetary Policy & Earnings

April PCE inflation rose 3.8% year over year, the highest since May 2023. Core PCE rose 3.3% year over year and 0.2% month over month. Personal spending rose 0.5%, income was flat, and the savings rate fell to 2.6%, showing consumers are spending faster than income growth. FactSet reported Q1 S&P 500 blended earnings growth of 28.6%, which would be the strongest since Q4 2021 if sustained.

Jobs Friday is the main event. The May nonfarm payrolls report is due Friday, June 5 at 8:30 a.m. ET. Kiplinger cites a Barclays estimate of 75,000 jobs added and unemployment rounding to 4.3%, but notes labor signals are unusually mixed. A hot wage/jobs print would reinforce “higher for longer”; a weak report would revive growth concerns.

ISM and labor-market breadth matter before payrolls. Watch ISM Manufacturing on Monday, JOLTS on Tuesday, ADP and ISM Services on Wednesday, and jobless claims/productivity Thursday. These will shape whether investors see the economy as resilient enough to absorb higher energy prices.

Consumer Stress Commentary

Consumer pressure remains visible. The personal saving rate fell to 2.6%, while credit-card balances remain elevated and delinquencies are above pre-pandemic levels. Gasoline and energy costs remain a major source of household stress, though oil’s late-month decline may reduce pressure if sustained. Consumer sentiment remains weak, with Michigan sentiment near record-low levels.

Commodities, Currencies & Macro Assets

WTI crude: ~$87.75/bbl
Brent crude: ~$91.70/bbl
Gold: ~$4,541/oz
Dollar Index: WSJ Dollar Index 95.58
Bitcoin: ~$73,885
Ethereum: ~$2,022

Commodities.

Source: Seeking Alpha

Liquidity Conditions

Equity liquidity remained supportive for large-cap AI, software, and semiconductor leaders. Treasury liquidity improved as yields declined late in the week.

Flows & Positioning

Positioning remains in AI infrastructure, servers, networking, semiconductors, software, and cybersecurity. The Nasdaq’s April–May advance of roughly +25% was its strongest two-month stretch since 2002.

What Matters This Week

Markets will focus on:

  • May jobs report
  • Broadcom, Ciena, and AI infrastructure earnings
  • U.S.–Iran peace-deal progress
  • Oil prices and inflation expectations
  • Whether leadership broadens beyond AI hardware and software
  • Treasury yields and Fed rate-hike risk

Bottom Line

Markets ended May at record highs, powered by AI infrastructure earnings, falling oil, and optimism around a potential U.S.–Iran deal. The S&P 500’s ninth straight weekly gain reflects strong momentum, but leadership remains narrow and concentrated in AI-linked stocks. Inflation remains sticky even as oil falls, while consumers continue drawing down savings.

Stock Talk

Interest Rates, A Headwind not Roadblock to your Growth Stock Investments

Past performance is no guarantee of future results. Indexes are unmanaged and one cannot invest directly in an index. They do not reflect any fees, expenses or sales charges. The preceding discussion is for informational purposes only. Investing involves risk and no reference to any security listed above should be considered a buy or sell recommendation. Advisory services are provided through Oak Harvest Investment Services, LLC, a registered investment adviser.