Weekly Market Update, May 11th, 2026

May 11, 2026

Earnings and Semiconductors Boom

Key Takeaways Last Week

U.S. stocks rose for a sixth straight week. The S&P 500 gained +2.3%, the Nasdaq rose +4.5%, the Dow gained +0.2%, and the Russell 2000 rose +1.7%. Year to date, the S&P 500 is up +8.1%, the Dow +3.2%, the Nasdaq +12.9%, and the Russell 2000 +15.3%.

  • The S&P 500 and Nasdaq closed at record highs after stronger earnings and April payrolls.
  • April payrolls rose 115,000, above expectations, while unemployment stayed at 4.3%.
  • AI, semiconductors, memory, cloud infrastructure, and technology led market gains.
  • Oil remained $100+ Brent due to U.S.–Iran and Strait of Hormuz tensions.
  • Q1 earnings remain strong and accelerating, with FactSet reporting 84% of S&P 500 companies beating EPS estimates and blended earnings growth of 27.7%.

U.S. Stock Performance – Index and Sector Moves

Mega-cap technology and hyperscaler spending remain the dominant market driver. Microsoft, Amazon, Alphabet, Meta, and Oracle continue increasing AI-related capital expenditures at historically aggressive rates, with combined projected 2026 AI/data-center capex estimates now exceeding $420–450 billion annualized, according to multiple Wall Street and FactSet estimates. The key debate is whether rising AI infrastructure spending eventually reduces free cash flow available for stock buybacks, which have historically provided a major source of equity market support during periods of volatility.

Financial markets improved during the week ending 5/8/26 (data from Seeking Alpha)

US Equities table.

Source: Seeking Alpha

The S&P 500 rose +2.3% to 7,398.93. The Dow rose +0.2% to 49,609.16. The Nasdaq gained +4.5% to 26,247.08, and the Russell 2000 rose +1.7%. Year to date, the S&P 500 is up +8.1%; the Dow +3.2%; the Nasdaq +12.9%; and the Russell 2000 +15.3%.

Sector leadership was driven by technology, semiconductors, memory chips, AI infrastructure, and cloud software. S&P 500 technology gained 6.5% for the week, leading all sectors.

US Equity Sectors.

Source: Seeking Alpha

S&P 500 Weekly Leaders and Laggards Ranked (best available weekly % change ordering):

Top Performers (WTD):

  • Akamai Technologies (AKAM), +26.6% –seven-year $1.8 billion cloud infrastructure contract.
  • Sandisk (SNDK), +16.6% – memory-chip strength and AI/data-center storage demand.
  • Micron Technology (MU), +15.5% – Rallied with memory and AI semiconductor strength.
  • Intel (INTC), +14.0% – preliminary chipmaking agreement with Apple and continued AI/semiconductor momentum.
  • Monster Beverage (MNST), +13.6% – Energized profit and revenue with strong international growth.

Bottom Performers (WTD):

  • Zoetis (ZTS), -23.2% – Fell after Q1 earnings missed estimates due to weaker U.S. pet demand.
  • Arista Networks (ANET), -19.3% – Sold off despite strong Q1, supply constraints, margin pressure.
  • CDW (CDW), -18.9% – Declined as investors focused on margin pressure and IT-spending mix concerns.
  • CoreSite ticker issue (COR), -15.4%.
  • Huntington Ingalls (HII), -12.2% – Q1 EPS and revenue beats and broader defense-stock weakness.

Breadth & Participation

US Equity Factors table.

Source: Seeking Alpha

The equal-weight S&P 500 continued to lag the cap-weighted index, suggesting participation remained narrower than headline index performance implied. New highs expanded in AI, semiconductors, memory, cloud, and infrastructure stocks, while energy, defense, and select health-care names lagged.

International/Global

International markets were mixed as investors weighed strong U.S. equity momentum against geopolitical risks and oil volatility. Global markets remain sensitive to Strait of Hormuz developments, as disruptions could significantly impact global oil supply, inflation, and trade flows. International markets were weaker overall as geopolitical risk weighed on sentiment. AP reported that indexes fell across much of Europe and Asia, with Germany’s DAX down –1.3% and Hong Kong’s Hang Seng down –0.9%, while South Korea’s Kospi reached another all-time high.

Volatility & Risk Sentiment

Risk sentiment remained constructive due to strong jobs data, strong earnings, and AI leadership.

VIX: 17 with the forward curve steepening to 21 into summer.
MOVE Index: 72

Bonds, Credit & Interest Rates

Treasury yields ended the week flat. The 2-year Treasury yield ended near 3.88%, the 10-year near 4.36%, and the 30-year near 4.94%. The 2s/10s curve remained inverted. Credit conditions are stable, though private credit, geopolitical risk, and oil-driven inflation remain key watch items.

Economic Data, Monetary Policy & Earnings

The key economic report was April payrolls. Employers added 115,000 jobs in April, above expectations, while unemployment held at 4.3%.

Consumer sentiment remained weak, with the University of Michigan survey showing consumers worried about high gasoline prices and tariffs, though one-year inflation expectations softened slightly.

Earnings remained a major support. FactSet reported that 89% of S&P 500 companies had reported Q1 results, 84% beat EPS estimates, 80% beat revenue estimates, and blended Q1 earnings growth was 27.7%, the highest since Q4 2021 if sustained.

Consumer Stress Commentary

The key economic report was April payrolls. Employers added 115,000 jobs in April, above expectations, while unemployment held at 4.3%. Consumer sentiment remained weak, with the University of Michigan survey showing consumers worried about high gasoline prices and tariffs, though one-year inflation expectations softened slightly.

Earnings remained a major support. FactSet reported that 89% of S&P 500 companies had reported Q1 results, 84% beat EPS estimates, 80% beat revenue estimates, and blended Q1 earnings growth was 27.7%, the highest since Q4 2021 if sustained.

Commodities, Currencies & Macro Assets

Brent crude settled near $101.29/bbl, still well above its late-February level near $70 before the war.

WTI crude: $95
Gold: $4675
Dollar Index: 98.75

Bitcoin: approximately $80,929
Ethereum: approximately $2,329

Commodities table.

Source: Seeking Alpha

Liquidity Conditions

Equity liquidity conditions remained supportive for large-cap technology and semiconductor shares. Treasury liquidity appeared stable.

Flows & Positioning

The S&P 500 and Nasdaq posted their sixth straight weekly gains. Positioning remains concentrated in AI, chips, memory, cloud infrastructure, and mega-cap technology. Crowding risk remains elevated if leadership weakens or if inflation/oil risk pressures valuation multiples.

What Matters This Week

Markets will focus on:

  • CPI and PPI inflation data
  • Retail sales and consumer health
  • Trump-Xi meeting and trade/technology headlines
  • U.S.–Iran ceasefire and Strait of Hormuz developments
  • Earnings from Cisco, Applied Materials, Constellation Energy, and remaining S&P 500 reporters

Bottom Line

Markets continued higher for a sixth straight week, with the S&P 500 and Nasdaq reaching fresh records. Strong jobs data and better-than-expected earnings helped offset concerns about oil, Iran, tariffs, and weak consumer sentiment. Leadership remains heavily concentrated in AI, semiconductors, memory, and cloud infrastructure, while breadth remains a key risk.

Stock Talk

AI Agentic Boom meets Earnings Season

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.