Weekly Market Recap | May 18 – May 24

Analyst Highlights

• Equities advanced across major indexes: The S&P 500 rose 95%, Nasdaq gained 0.97%, and Dow Jones climbed 1.80% for the week.
• Small caps showed the strongest leadership: The Russell 2000 gained 39%, signaling broader risk appetite beyond mega-cap technology names.
• Bond markets remained under inflation pressure: War-driven energy costs pushed long-term yields higher, with 30-year Treasuries reaching their highest level since 2007.
• Oil weakness helped ease inflation fears: WTI and Brent both declined sharply as markets weighed the possibility of progress on an Iran-Hormuz deal.
• Geopolitics remained directly tied to markets:S.-Iran talks, Hormuz shipping risks, Ukraine escalation, and China-Japan tensions shaped investor focus.
• Technology momentum stayed AI-driven: Anthropic’s potential mega-round, DeepSeek’s pricing cuts, and ECB AI-cybersecurity warnings highlighted major sector themes.

IPO’s in the week

• Conexeu Sciences (CNXU, Nasdaq) — priced its IPO on May 21, 2026, offering 9,481,123 shares at $4.00 per share. Shares traded sharply higher after pricing, rising 10.18%.
• AMASS Brands (AMSS, Nasdaq) — priced its IPO on May 20, 2026, offering 14,293,298 shares at $8.98 per share. Shares traded sharply lower after pricing, falling 32.81%.
• Lincoln International (LCLN, NYSE) — priced its IPO on May 20, 2026, offering 21,049,988 shares at $20.00 per share. Shares traded higher after pricing, rising 4.38%.
• Optimi Health (OPTH, Nasdaq) — priced its IPO on May 20, 2026, offering 2,500,000 shares at $6.25 per share. Shares traded higher after pricing, gaining 2.63%.

Additional IPO Activity: Several SPAC and acquisition vehicle offerings also priced during the week, mostly around the standard $10.00 per share/unit level, including Burtech Acquisition, FortuneX Acquisition, Peace Acquisition, Aperture AC, Oceanhawk Acquisition, Research Alliance, and Amanat Acquisition. Early trading was mostly flat to slightly mixed across these vehicles, while operating-company listings showed wider performance dispersion, led by Conexeu Sciences’ gain and AMASS Brands’ sharp decline.

Markets Weekly

1. S&P 500 closed at 7,473.47, gaining 70.42 points, or 0.95%, for the week.
2. Russell 1000 closed at 4,059.00, gaining 42.65 points, or 1.06%, for the week.
3. Russell 2000 closed at 2,869.23, gaining 94.13 points, or 3.39%, for the week.
4. Russell 3000 closed at 4,233.75, gaining 48.87 points, or 1.17%, for the week.
5. CBOE VIX closed at 16.70, declining 1.12 points, or 6.29%, for the week.
6. Dow Jones closed at 50,579.70, gaining 893.58 points, or 1.80%, for the week.
7. NASDAQ Composite closed at 26,343.97, up 253.24 points, or 0.97%, for the week.
8. Bitcoin closed at 76,808.00, declining 146.17 points, or 0.19%, for the week.
9. Ethereum closed at 2,091.64, declining 36.88 points, or 1.73%, for the week.
10. Solana closed at 85.03, declining 0.27 points, or 0.32%, for the week.
11. XRP closed at 1.3481, declining 0.0411 points, or 2.96%, for the week.
12. Gold closed at 4,523.20, declining 29.30 points, or 0.64%, for the week.
13. Silver closed at 76.199, declining 0.874 points, or 1.13%, for the week.
14. WTI Crude closed at 96.60, declining 8.82 points, or 8.37%, for the week.
15. Brent Crude closed at 103.40, declining 8.70 points, or 7.76%, for the week.

• Fed’s preferred inflation gauge is expected near 3.8% as war-driven energy costs raise concern over broader price pressures.
• Iran-driven inflation fears pressured global bonds, pushing 30-year Treasury yields to their highest level since 2007.
• Bond traders priced in Fed rate hikes by December as Warsh was expected to prioritize inflation credibility over Trump’s lower-rate pressure.
• Global growth showed strain as war-driven energy inflation persisted, factory activity weakened, and G7 long-term yields reached two-decade highs.
• Bond strategists warned yields may stay elevated even if Iran-war inflation eases, citing debt burdens, AI investment, and real-yield pressure.
• ECB President Lagarde said June inflation forecasts will likely be revised higher, reinforcing pressure on European rate-cut expectations.
• Hormuz remains the key obstacle in U.S.-Iran peace talks, keeping energy markets exposed to shipping disruptions and inflation risk.
• AI’s market dominance narrowed leadership, cutting large-cap active managers beating the S&P 500 from nearly half to 25%.

Politics Weekly

• US. and Iran moved closer to a Hormuz reopening deal, though unresolved asset and enrichment disputes could still derail talks.
• US. forces said Iran’s port blockade redirected 100 vessels, intensifying pressure on Tehran and raising Gulf shipping-risk concerns.
• Iran war pressures U.S. military inventories, delaying Taiwan arms sales and raising concerns over readiness for any China conflict.
• Russia launched a major missile and drone barrage on Ukraine, including an Oreshnik missile, escalating pressure on Kyiv and Europe.
• Xi criticized Japan’s rearmament during his Trump summit, highlighting rising China-Japan tensions over Taiwan and Indo-Pacific security.
• India called the U.S. a reliable energy partner as both countries deepened strategic alignment on fuel supply and energy security.
• Tulsi Gabbard resigned as U.S. intelligence director, citing family illness, amid reported tensions with Trump over foreign policy.

Technology Advancements in the week

• Anthropic may close a $30 billion-plus funding round above a $900 billion valuation, underscoring investor demand for frontier AI.
• DeepSeek made its 75% V4-Pro discount permanent, intensifying AI model pricing competition between Chinese firms and global rivals.
• ECB urged banks to fix cybersecurity gaps faster after AI models showed they can expose vulnerabilities within minutes.
• SpaceX plans a 10-gigawatt solar factory near Austin to support Musk’s broader AI data-center and solar-manufacturing ambitions.
• Waymo paused robotaxi service in flood-hit cities and halted freeway access to address software risks around flooding and construction zones.

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