9 Consecutive Weeks of Gains

May 29, 2026

May is historically a quiet month for the market and coming off the best month for the S&P 500 in 6 years we thought it might be a place where we would see some profit taking.  However, investors chose to ignore the war, rising oil prices and rising interest rates and focused instead on the AI revolution, sending the S&P 500 higher every single week.  The month ended with another move to new all-time highs, equaling the longest consecutive week winning streak for the S&P 500 since 1963.  Last month we asked if the market can be this strong with so many things working against it, what will happen if global news starts to improve. In May we saw more of the same, uncertain news that seemed to have no impact on the market.  At the end of the month the S&P 500 had gained 5.1% and is now 10.7% higher this year. Technology stocks continued to lead the rally with a year-to-date gain of 16%.  Oil prices are still elevated but did move 16% lower during May and gold was fractionally lower.  The interest rate on the 10-year Treasury edged higher.

 

The month began on a Friday with the S&P 500 moving to a new all-time high. The first full week of the month was full of war news with Iran shooting missiles at its neighbors while peace talks were stalled.  However, the market did believe some type of agreement was imminent, which sent oil prices lower nearly every day and a better-than-expected government jobs report on Friday helped the S&P 500 end the week with a gain of 2.3%. The following week peace talks appeared to be stalled which sent oil prices steadily higher, but the market shrugged it off to focus on President Trump’s trip to China thinking the Chinese might be able to intervene and end the war.  The S&P 500 moved steadily higher during the week. When Trump left China without a peace deal the S&P 500 erased most of those gains but did end the week 10 points higher which kept the win streak alive. Interest rates took center stage during the 3^rd week as inflation concerns, primarily tied to oil, became a focus. The interest rate on the benchmark 10-year Treasury hit the highest level since January 2025 and the rate on the 30-year bond hit a 16-year high.  Midweek hopes for peace sent oil and interest rates sharply lower and helped the S&P 500 end the week with a gain of .9%. The final week was shortened by the Memorial Day weekend but was more of the same.  Peace and the opening of the Strait of Hormuz continued to be evasive, but oil prices and interest rates moved lower, and stocks continued to move higher.

 

Summer has traditionally been a good period for stocks with June, July, and August all trending higher.  Last month we said if the market can repeatedly hit new all-time highs with war, rising oil price, rising inflation and rising interest rates, what will happen when things actually start to get better.  We ask the same question this month. Valuation continues to be a topic and while stocks are richly valued, the valuations are not silly.  The forward price to earnings ratio for the S&P 500 is currently around 21.5 versus the 10-year average of 19.5.  A valuation approximately 10% above the historic norm would seem reasonable in the AI revolution we are living. With that said, we have not had a consecutive week rally of this magnitude in 63 years so a pullback would appear to be imminent and appropriate.  With that said, barring some type of headline making event, one would expect pullbacks to be modest and an opportunity to add to names we have been watching as an end to the war could bring lower oil prices and higher stock prices.

 

If you know someone who would be interested in learning more about Greenberg Financial Group or taking advantage of our complementary financial plan, please contact us at 520-544-4909, or visit our website at www.greenbergfinancial.com. As always, the key to successful investing is to have a portfolio that is consistent with your investment objectives and risk tolerance. We invite you to listen to our weekly Money Matters radio show which airs every Sunday Morning from 8:00 AM to 10:00 AM on KNST AM 790.  Previous shows are available on the iHeart app, our website, or your favorite podcast platform.  Simply type “Money Matters with Dean Greenberg”.