Weekly Market Recap
Week ended May 22
Market-moving news
Record run
Stocks overcame a shaky start to the week, turning positive on Wednesday as the S&P 500 recorded its eighth weekly gain in a row—the longest streak since late 2023. The Dow outperformed, eclipsing its historic peak set more than three months earlier. At Friday’s close, the S&P 500 and the NASDAQ were slightly below the record levels they set on May 14.
Bond volatility
The recent rise in inflation-driven bond market volatility peaked on Tuesday, when the yield of the 30-year U.S. Treasury closed at 5.18%, the highest since 2007. While yields slipped later in the week, they remained elevated, with the 10-year Treasury ending the trading week at 4.56%, the highest in 12 months.
Mag 7 earnings
The outsize impact that mega-cap tech companies are having on the broader market’s earnings became more apparent after the last of the so-called Magnificent Seven stocks reported quarterly results. Those seven firms recorded average first-quarter earnings growth of 63%, versus 17% for the other 493 companies in the S&P 500 Index, according to FactSet. For the Mag 7, it was the highest quarterly growth rate in nearly six years.
Oil pullback
The price of U.S. crude climbed above $108 per barrel on Tuesday, only to slip back below $100 as negotiations over the Middle East conflict continued. For the week, oil was down more than 4% at Friday afternoon’s price of around $97.
Sinking sentiment
A monthly gauge of U.S. consumer sentiment fell to a record low, extending its recent decline amid a spike in energy prices. The University of Michigan’s survey results released on Friday showed that sentiment fell to a final May reading of 44.8 from a preliminary figure of 48.2 released a couple of weeks earlier. It was the third straight monthly decline following a recent peak of 56.6 in February.
Fed rate outlook
Minutes released on Wednesday from the U.S. Federal Reserve’s most recent meeting showed that policymakers were considering keeping rates unchanged longer than previously expected while also considering rate hikes if inflation remains high. A majority of Fed members said that a shift to more restrictive monetary policy would likely become appropriate if inflation remains above the Fed’s long-term 2% inflation target.
Small-cap surge
A U.S. small-cap benchmark outperformed its large-cap peer by a wide margin, extending small caps’ year-to-date outperformance. The small-cap index rose 2.7% for the week versus a 1.1% gain for the large-cap benchmark.
PCE inflation ahead
A monthly report scheduled for release on Thursday will provide a fresh look at the recent rise in inflation, including higher energy costs. An earlier reading from the Personal Consumer Expenditures Price Index showed an annual rate of 3.5% in March. A subsequent report on another inflation gauge, the Consumer Price Index, showed an April reading of 3.8%—the highest level in nearly three years.
The week ahead: May 25-29
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Investment returns
Equities
U.S. equity size and style total returns as of 5/22/26 (%)
1 week
| 1.8 | 1.1 | 0.5 | Large | |
| 2.1 | 2.2 | 2.5 | Medium | |
| 2.6 | 2.7 | 2.9 | Small | |
| Value | Core | Growth | ||
YTD
| 12.9 | 9.2 | 5.8 | Large | |
| 13.0 | 10.3 | 2.0 | Medium | |
| 16.9 | 16.1 | 15.3 | Small | |
| Value | Core | Growth | ||
Index/market total returns as of 5/22/26 (%)
| Close | 1 week | YTD | |
|---|---|---|---|
| Dow Jones Industrial Average | 50,579.7 | 2.2 | 5.9 |
| NASDAQ Composite Index | 26,344.0 | 0.5 | 13.6 |
| S&P 500 Index | 7,473.5 | 0.9 | 9.7 |
| MSCI EAFE Index | 3,086.9 | 2.2 | 8.6 |
| Cboe Volatility Index | 16.7 | -9.2 | 11.3 |
International/developed (%)
| 1 week | YTD | |
|---|---|---|
| EAFE | 2.2 | 8.6 |
| Europe | 3.0 | 6.4 |
| France | 2.1 | 0.5 |
| Germany | 3.7 | 1.5 |
| Italy | 1.7 | 8.4 |
| Japan | 0.9 | 14.2 |
| Spain | 1.8 | 3.7 |
| Switzerland | 2.2 | 5.5 |
| U.K. | 3.3 | 7.2 |
Emerging markets (%)
| 1 week | YTD | |
|---|---|---|
| EM | 1.1 | 20.9 |
| Brazil | 0.5 | 14.7 |
| China | -2.3 | -7.2 |
| India | 0.9 | -11.6 |
| Indonesia | -8.8 | -34.1 |
| Korea | 4.7 | 97.2 |
| Mexico | 0.6 | 13.3 |
| Russia | #N/A | #N/A |
| Taiwan | 2.2 | 50.5 |
S&P 500 sectors (%)
| 1 week | YTD | |
|---|---|---|
| S&P 500 Index | 0.9 | 9.7 |
| Communication services | -1.9 | 9.3 |
| Consumer discretionary | 1.9 | 2.6 |
| Consumer staples | -1.0 | 11.1 |
| Energy | -0.2 | 33.3 |
| Financials | 1.6 | -4.7 |
| Healthcare | 3.3 | -2.7 |
| Industrials | 0.2 | 11.1 |
| Information tech | 1.0 | 18.4 |
| Materials | 0.1 | 10.5 |
| Real estate | 3.2 | 15.3 |
| Utilities | 3.4 | 7.0 |
Fixed income, currencies, and commodities
U.S. fixed-income style total returns as of 5/22/26 (%)
1 week
| 0.0 | 0.1 | 0.7 | High | Credit quality |
| 0.0 | 0.2 | 0.7 | Medium | |
| 0.2 | 0.3 | 0.8 | Low | |
| Limited | Moderate | Extensive | ||
| Interest-rate sensitivity | ||||
YTD
| 0.9 | -0.4 | -2.2 | High | Credit quality |
| 0.3 | -0.2 | -0.4 | Medium | |
| 1.4 | 1.1 | 1.4 | Low | |
| Limited | Moderate | Extensive | ||
| Interest-rate sensitivity | ||||
U.S. Treasury bond yields as of 5/22/26 (%)
| END OF WEEK | PRIOR YEAR END | YTD CHANGE (BPS) | |
|---|---|---|---|
| 2 Yr | 4.12 | 3.48 | 64 |
| 10 Yr | 4.56 | 4.16 | 40 |
| 30 Yr | 5.07 | 4.84 | 23 |
| 2-10 spread | 44 | 68 | -26 |
| 10-30 spread | 51 | 68 | -17 |
U.S. bond sector total returns (%)
| 1 week | YTD | |
|---|---|---|
| Aggregate | 0.3 | -0.5 |
| Bank loans | -0.1 | 0.5 |
| Convertible | 1.0 | 19.6 |
| Corporate | 0.2 | -0.6 |
| High yield | 0.3 | 1.1 |
| MBS | 0.4 | -0.1 |
| Municipal | -0.3 | 0.3 |
| Preferreds | -0.5 | -0.3 |
| TIPS | -0.3 | 0.6 |
| Treasury | 0.2 | -0.8 |
Global bond total returns (%)
| 1 week | YTD | |
|---|---|---|
| EM Local | 0.4 | 2.7 |
| EMD USD | 0.1 | 1.3 |
| Global Agg | 0.3 | -0.5 |
| Global Agg Ex-U.S. | 0.3 | -0.5 |
| Multiverse | 0.3 | -0.4 |
Commodities (%)
| 1 week | YTD | |
|---|---|---|
| BBG Com Ind | -1.5 | 28.2 |
| Oil (WTI) | -4.3 | 93.2 |
| Gold | -0.8 | 4.1 |
Currencies (USD) (%)
| 1 week | YTD | |
|---|---|---|
| EM FX | #N/A | #N/A |
| AUD | -0.4 | 6.9 |
| CAD | -0.4 | -0.8 |
| CHF | 0.1 | 0.8 |
| EUR | -0.3 | -1.2 |
| GBP | 0.7 | -0.1 |
| JPY | -0.3 | -1.5 |
GDP
Jobs
Inflation
Ex-U.S.
Regions/countries
| GDP Growth (%) annualized | Inflation Rate (%) CPI | Unemployment Rate (%) | 10-Year Government Bond (%) | Sovereign Credit Rating | |
|---|---|---|---|---|---|
| Eurozone | 0.8 | 3.0 | 6.2 | _ | _ |
| China | 5.0 | 1.2 | 5.2 | 1.75 | A+ |
| Germany | 0.3 | 2.9 | 6.4 | 3.03 | AAA |
| Japan | 0.6 | 1.4 | 2.7 | 2.77 | A+ |
| U.K. | 1.1 | 2.8 | 5.0 | 4.90 | AA |
Fund industry overview
Total net flows: open-end funds and ETFs as of 4/30/26 ($B)
| MONTH | 12 Month | ASSETS | |
|---|---|---|---|
| U.S. Equity | 45.2 | -64.3 | 19,044.1 |
| Sector Equity | 19.7 | 95.9 | 1,925.0 |
| Allocation | -6.6 | -55.6 | 1,605.4 |
| International Equity | 24.4 | 164.1 | 5,832.0 |
| Alternative | 3.6 | 19.2 | 142.3 |
| Commodities | -2.2 | 37.1 | 396.8 |
| Taxable Bond | 41.9 | 708.7 | 6,773.0 |
| Municipal Bond | 6.5 | 93.8 | 1,045.9 |
| Total all long-term funds | 116.8 | 1,009.4 | 37,468.6 |
Leading Morningstar fund categories by monthly net flows as of 4/30/26 ($B)
| MONTH | 12 Month | ASSETS | |
|---|---|---|---|
| Large Blend | 52.0 | 185.8 | 10,088.7 |
| Technology | 15.6 | 43.5 | 711.7 |
| Foreign Large Blend | 10.3 | 110.3 | 2,448.5 |
| Diversified Emerging Mkts | 9.2 | 40.6 | 989.1 |
| High Yield Bond | 6.4 | 15.7 | 401.0 |
Lagging Morningstar fund categories by monthly net flows as of 4/30/26 ($B)
| MONTH | 12 Month | ASSETS | |
|---|---|---|---|
| Trading--Leveraged Equity | -23.6 | -52.2 | 146.1 |
| Moderate Allocation | -5.6 | -41.6 | 860.3 |
| Large Value | -4.5 | -33.2 | 2,434.2 |
| Mid-Cap Growth | -4.4 | -42.3 | 346.5 |
| Small Blend | -2.4 | -25.1 | 729.3 |
Important disclosures
Important disclosures
Unless otherwise noted, all data is from FactSet.
The data provided is for informational purposes only and is not an endorsement of any security, mutual fund, sector, or index. This does not illustrate the performance of any John Hancock fund. The information contained here is not guaranteed as to accuracy or completeness. All economic and performance information is historical and does not guarantee future results.
The Dow Jones Industrial Average is a price-weighted index comprising 30 widely traded blue chip U.S. common stocks. The NASDAQ Composite Index is a market-value-weighted index of all common stocks listed on the NASDAQ stock exchange. The S&P 500 Index tracks the performance of 500 of the largest publicly traded companies in the United States. The MSCI Europe, Australasia, and Far East (EAFE) Index tracks the performance of publicly traded large- and mid-cap stocks of companies in those regions. The MSCI Emerging Markets Index tracks the performance of large- and mid-cap stocks in emerging markets. The Cboe Volatility Index (VIX) shows the market’s expectation of 30-day volatility and is constructed using the implied volatilities of a wide range of S&P 500 Index options. Weekly and year-to-date figures for the VIX show percentage changes, not investment returns. The Russell 1000 Growth Index tracks the performance of large-cap companies in the United States with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Value Index tracks the performance of large-cap companies in the United States with lower price-to-book ratios and lower forecasted growth values. It is not possible to invest directly in an index. Total returns are calculated gross of foreign withholding tax on dividends.
The Treasury yield curve is derived from available U.S. Treasury securities trading in the market and is provided directly by the U.S. Federal Reserve. The spread measures the difference in yield between two government securities. A normal (positive) yield curve occurs when longer-term rates are higher than shorter-term rates. The opposite holds true for an inverted yield curve. Year-to-date changes in U.S. Treasury bond yields are shown in basis points (BPS). One hundred basis points equals one percent.
Oil prices are represented by West Texas Intermediate (WTI) crude oil.
The G20 countries comprise a mix of the world’s largest advanced and emerging economies, representing about two-thirds of the world’s population, 85% of global gross domestic product, and over 75% of global trade.
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