05/17/2026
Highlights from the past week and a look at the week ahead.
~Major equity indices were mostly lower this week. It was an up-and-down week, with the S&P setting fresh record highs on Monday, Wednesday, and Thursday on narrow breadth but seeing a more risk-off tone on Tuesday and Friday.
~Despite hotter inflation, the S&P 500 reached new highs, crossing the 7,500 milestone for the first time in history.
~Stronger than expected core CPI growth (+0.4% MoM) will keep the Fed cautious given upside risks to inflation.
~The 10-year Treasury yield climbed above 4.50%, as the market is now pricing in a full 25 bps rate hike by March 2027.
~Earnings season is set to ramp up next week with earnings results from NVIDIA as well as many retailers including Walmart, Target, TJX, Home Depot, and Lowe's.