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Quote of the Week
“The big money is not in the buying or the selling, but in the waiting.”
— Charlie Munger
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Markets just closed out one of the strongest Mays in years. The S&P 500 finished higher for the ninth straight week, its longest winning streak since 2023. The Dow crossed 51,000 for the first time, and the Nasdaq capped the month with an 8% gain. The April inflation report came in roughly as expected, the Federal Reserve’s preferred measure ticked slightly higher, and despite renewed friction in the Iran situation, markets continued to push to new highs. Underneath the headlines, the AI trade is once again leading, the labor market remains intact, and consumer spending continues to support the economy. A great deal happened in a short week. Let us walk through it.
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Number of the Week
9
Consecutive weekly gains for the S&P 500, the longest winning streak since 2023. Streaks like this do not happen often, and they tend to reflect more than just enthusiasm. They reflect a market that is, for the moment, finding more reasons to advance than reasons to retreat.
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📊 Market Snapshot — Week Ending May 29, 2026
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INDEX / ASSET
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CLOSE
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WK CHANGE
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YTD
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S&P 500
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7,580.06
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▲ 1.43%
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▲ 10.7%
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Dow Jones
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51,032.46
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▲ 0.90%
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▲ 6.2%
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Nasdaq Comp.
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26,972.62
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▲ 2.39%
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▲ 16.4%
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Russell 2000
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2,919.00
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▲ 1.73%
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▲ 17.6%
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Brent Crude
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$92.05
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▼ 3.3%
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▲ ~27%
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Gold (Spot)
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$4,593.00
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▲ 0.5%
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▲ ~19%
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10-Yr Treasury
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4.45%
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▼ 6 bps
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▲ ~55 bps
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VIX (Fear Index)
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15.32
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▼ 1.27 — Improving
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Data sources: Yahoo Finance, CNBC, Reuters, Investing.com, as of May 29, 2026 close. Past performance is not indicative of future results.
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📉 What Drove Markets Last Week
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It was a holiday-shortened week that delivered a great deal. Stocks pushed steadily higher across the four trading days, the inflation report landed without disturbing the rally, and tech earnings provided more fuel for the AI trade. Three developments stood out:
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📈 Markets Set Fresh Records
The Dow crossed 51,000 for the first time, the S&P 500 logged its ninth straight winning week, and the Nasdaq capped May with an 8% gain. The Russell 2000 is up nearly 18% year to date, the strongest performance of any major index.
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🏭 Inflation Came in About as Expected
Core PCE rose 3.3% annually and 0.2% for the month, both at or below forecasts. Headline PCE hit 3.8%, the highest in three years. The report was elevated in absolute terms but did not deliver the upside surprise some had feared.
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💻 AI Rally Broadened Out
Dell and Snowflake each surged more than 40% on the week after earnings, and Micron crossed a $1 trillion market cap for the first time. The AI investment cycle is showing real signs of spreading beyond Nvidia.
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The Iran story remained the wildcard. Over the long weekend, the U.S. military conducted strikes on Iranian missile sites, and Iran responded with threats. Markets opened Tuesday looking past the escalation, with another round of peace headlines providing offsetting optimism. President Trump indicated late Friday that he would soon make a decision on a potential deal. Until that resolves, oil will likely continue to swing on every headline. For now, Brent settled the week below $93, well off its recent highs.
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🔭 What to Watch This Week (June 2 – 6)
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A heavy week for economic data. The May jobs report Friday is the headline event, with the ISM Manufacturing and Services reports providing important readings on the broader economy along the way.
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KEY EVENTS THIS WEEK
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Mon 6/2
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ISM Manufacturing PMI (May) • Construction Spending • Iran situation developing
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Tue 6/3
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JOLTS Job Openings (April) • Factory Orders
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Wed 6/4
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ADP Employment (May) • ISM Services PMI (May) • Hewlett Packard Enterprise earnings
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Thu 6/5
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Jobless Claims • Productivity (Q1 revised) • Broadcom, Lululemon earnings
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Fri 6/6
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May Jobs Report (Non-Farm Payrolls) • Unemployment Rate • Average Hourly Earnings
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Friday brings the May jobs report. Last month’s number came in stronger than expected, helping put to rest some of the labor market concerns that had been building. This month’s report will tell us whether that strength has continued or whether hiring has begun to slow as energy prices weigh on business decisions. A number that confirms continued labor market resilience would extend the supportive narrative. A meaningful slowdown could shift the focus back toward growth concerns.
The ISM Manufacturing and Services reports earlier in the week will offer an important early read on second-quarter activity. The Iran situation continues to be the variable that could override the data on any given day. And our new Federal Reserve Chair has yet to give a major public address; any comments from him this week would draw close attention.
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🌎 The Big Picture — Our Take on the Markets
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The Munger quote at the top of this letter speaks to what has just unfolded. The investors who have benefited most from the recovery since the March lows are those who held their positions through a moment that felt deeply uncomfortable. They were not buying anything new. They were simply waiting, and the market rewarded that patience.
When we step back from the headlines, the picture remains constructive. Corporate earnings continue to come in well above expectations, with the AI investment cycle now broadening beyond Nvidia to companies like Dell, Snowflake, and Micron. The labor market is steady, consumer spending is holding, and the inflation data this week, while still elevated, came in roughly in line rather than worse. These are the foundations that have supported the rally, and all of them remain in place.
There are real questions ahead. Iran could turn at any moment. The jobs report could disappoint. Inflation could prove stickier than the latest data suggests, and we will continue to monitor these things closely. But the economy has been more resilient than nearly anyone expected when this year began, and that resilience has carried the market through every test so far. For long-term investors, the underlying picture continues to argue for staying engaged. We will keep you informed.
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As we close out May, the S&P 500 sits up nearly 11% on the year and the Russell 2000 is up nearly 18%. Nine straight weekly gains. New highs across multiple indexes. It has been a remarkable recovery from the March lows, and strong corporate earnings appear to be keeping the rally alive. With more than 80% of S&P 500 companies beating expectations this season, the fundamentals continue to provide a reason for markets to advance even in the face of geopolitical and inflation concerns.
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If you have any questions about your portfolio or what any of this means for your specific situation, please don’t hesitate to reach out to your CIAS Investment Adviser Representative. We are here to help you navigate these markets with confidence.
Edward J. Sabo
Chief Investment Officer
Capital Investment Advisory Services, LLC
Important Disclosures:
Past performance is not indicative of future results. This material is not financial advice or an offer to sell any product. The statements contained herein are solely based upon the opinions of Edward J. Sabo and the data available at the time of publication of this report, and there is no assurance that any predicted or implied results will actually occur. Information was obtained from third-party sources, which are believed to be reliable, but are not guaranteed as to their accuracy or completeness.
The actual characteristics with respect to any particular client account will vary based on a number of factors including but not limited to: (i) the size of the account; (ii) investment restrictions applicable to the account, if any; and (iii) market exigencies at the time of investment. Capital Investment Advisory Services, LLC (CIAS) reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. The information provided in this report should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in an account’s portfolio at the time you receive this report or that securities sold have not been repurchased. The securities discussed may not represent an account’s entire portfolio and in the aggregate may represent only a small percentage of an account’s portfolio holdings. It should not be assumed that any of the securities transactions, holdings or sectors discussed were or will prove to be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of the securities discussed herein.
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