Weekly Market Update: June 1, 2026

Market Update
Written By Trey Kerns

Week Ending May 29, 2026:

  • S&P 500: +0.81%

  • NASDAQ Composite: +1.19%

  • Dow Jones Industrial Average: +1.13%

Market Takeaway

U.S. equity markets moved higher during the week ending May 29, with all three major indexes posting gains and reaching fresh record highs. Investor sentiment remained positive throughout the week, supported by continued strength in technology, optimism surrounding artificial intelligence, improving geopolitical signals tied to U.S.-Iran diplomatic negotiations, and investor reaction to newly released economic data.

The broader tone remained constructive as markets continued building on recent momentum. While investors remain attentive to inflation, economic growth, and policy expectations, last week’s move higher reflected continued confidence in key areas of the market despite mixed economic reports.

A major contributor to sentiment last week was earnings season, with several closely watched companies reporting results across software, semiconductors, enterprise infrastructure, and consumer retail. Overall, results came in stronger than expected and reinforced several of the themes currently driving markets—particularly AI spending, cloud demand, and consumer resilience.

Thematic Drivers of the Week

1. Artificial Intelligence Continues Supporting Market Leadership

What happened:

Investor enthusiasm surrounding artificial intelligence remained a primary driver of market performance last week, with earnings from several major companies reinforcing continued demand tied to AI infrastructure, software adoption, and data center expansion.

Why it mattered:

AI-related themes continue to influence leadership within the broader market, particularly across large-cap technology and growth-oriented sectors. Ongoing investment in infrastructure, software, and semiconductor-related businesses remains a major area of focus for investors.

Market reaction:

Technology continued providing leadership across major indices, helping support new market highs by the end of the week. Earnings from Salesforce (CRM), Snowflake (SNOW), Dell Technologies (DELL), and Marvell Technology (MRVL) all helped reinforce investor confidence around enterprise technology and AI-related spending trends.

2. Positive U.S.-Iran Diplomatic Signals Supported Sentiment

What happened:

Markets responded positively to developments surrounding U.S.-Iran diplomatic negotiations.

Why it mattered:

Geopolitical developments can directly influence investor sentiment, commodity pricing, and broader market stability. More constructive diplomatic headlines helped support a positive tone throughout the week.

Market reaction:

Improved geopolitical sentiment contributed to the broader risk-on environment and helped reinforce steady investor confidence.

3. Economic Data Highlighted Slower Growth and Persistent Inflation

What happened:

Two closely watched economic reports were released during the week.

The second estimate of first-quarter Gross Domestic Product showed the U.S. economy grew at an annualized rate of 1.6%, revised lower from the initial estimate of 2.0%, reflecting weaker-than-expected consumer spending and lower inventory investment.

The April Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation measure, also showed inflation remaining elevated. Personal consumption expenditures increased 0.5% in April, while the personal saving rate declined to 2.6%.

Why it mattered:

The GDP revision pointed to slower economic growth than previously estimated, while the PCE report reinforced that inflation pressures remain elevated. Together, these reports continue shaping expectations around Federal Reserve policy and the broader economic outlook.

Market reaction:

Despite softer growth data and persistent inflation readings, markets remained resilient. Investors appeared encouraged by continued earnings strength and broader market momentum, with equities continuing higher through the week.

Earnings Recap: Key Companies in Focus

Several companies highlighted in last week’s preview reported earnings, with results broadly coming in ahead of expectations.

Salesforce (CRM) – Reported May 27

Markets were watching enterprise software demand, corporate technology spending trends, and AI adoption across software platforms.

Results:

  • EPS: $3.88 vs. $3.13 est. (+24.1% beat)

  • Revenue: $11.13B vs. $11.06B est. (+0.7% beat)

Takeaway:

Salesforce delivered a strong earnings beat, with results suggesting enterprise software demand remains healthy. Investors also continued focusing on how Salesforce is integrating AI across its platform offerings.

Snowflake (SNOW) – Reported May 27

Markets were watching cloud spending trends, software sentiment, and investor appetite across high-growth technology.

Results:

  • EPS: $0.39 vs. $0.32 est. (+22.0% beat)

  • Revenue: $1.39B vs. $1.32B est. (+5.1% beat)

Takeaway:

Snowflake posted another strong quarter, with results reinforcing continued demand for cloud data infrastructure and analytics platforms. The report was viewed positively as a read-through on broader cloud spending trends.

Dell Technologies (DELL) – Reported May 28

Markets were watching server demand tied to AI infrastructure, enterprise hardware spending, and data center growth trends.

Results:

  • EPS: $4.86 vs. $2.96 est. (+64.0% beat)

  • Revenue: $43.84B vs. $35.77B est. (+22.6% beat)

Takeaway:

Dell delivered one of the strongest earnings surprises of the week. Investors focused heavily on AI server demand and continued strength in enterprise infrastructure spending, particularly tied to data center expansion.

Marvell Technology (MRVL) – Reported May 27

Markets were watching semiconductor demand, networking infrastructure trends, and continued AI-related chip demand.

Results:

  • EPS: $0.80 vs. $0.79 est. (+0.6% beat)

  • Revenue: $2.42B vs. $2.41B est. (+0.4% beat)

Takeaway:

Marvell’s results modestly exceeded expectations and continued supporting the broader semiconductor and AI infrastructure narrative, particularly around networking and custom chip demand.

Costco Wholesale (COST) – Reported May 28

Markets were watching consumer spending trends, retail resilience, and household behavior amid inflation pressures.

Results:

  • EPS: $4.93 vs. $4.97 est. (-0.8% miss)

  • Revenue: $70.53B vs. $69.64B est. (+1.3% beat)

Takeaway:

Costco narrowly missed on earnings but beat on revenue. Investors continued viewing results as a positive signal around consumer spending resilience despite ongoing inflation pressures.

Major Economic Reports Recap

Gross Domestic Product (GDP) – Q1 Second Estimate

Released during the week, the second estimate showed the U.S. economy grew at an annualized rate of 1.6% in the first quarter.

This represented a downward revision from the initial estimate of 2.0%, driven primarily by softer consumer spending and lower inventory investment.

Personal Consumption Expenditures (PCE) Price Index

Also released last week, the April PCE report showed inflation remaining elevated and continues to serve as a closely watched measure for Federal Reserve policy expectations.

Key highlights:

  • Personal consumption expenditures: +0.5% in April

  • Personal saving rate: 2.6%

Economic Takeaway:

The latest data reflected a mixed economic backdrop: slower-than-expected economic growth paired with continued inflation pressure. While these reports remain important for policy expectations, markets largely looked through the data and maintained upward momentum.

Technical Perspective

  • Major U.S. indices remain above longer-term moving averages

  • The S&P 500, NASDAQ Composite, and Dow Jones Industrial Average all closed near record highs

  • Momentum remains constructive following continued upside movement in recent weeks

Interpretation:

The technical backdrop remains positive. Markets continue trading near highs with momentum supported by leadership from technology, improving investor sentiment, and resilience following mixed economic data. Current price action suggests the broader trend remains constructive.

Key Takeaways

  • Major U.S. indices reached fresh all-time highs last week

  • Artificial intelligence remains a key leadership theme across markets

  • Earnings from CRM, SNOW, DELL, and MRVL reinforced continued AI and enterprise technology demand

  • Costco (COST) results highlighted continued consumer resilience

  • Positive geopolitical developments helped support investor sentiment

  • First-quarter GDP was revised lower to 1.6%, signaling slower economic growth

  • April PCE data showed inflation remains elevated

  • Market momentum remains constructive despite mixed economic signals

Looking Ahead

Investors will continue watching earnings results, economic data, and policy developments in the week ahead.

Key areas of focus include:

  • Corporate earnings and forward guidance

  • Continued developments around artificial intelligence investment themes

  • Additional geopolitical headlines

  • Inflation data and Federal Reserve policy expectations

  • Broader economic reports that may influence growth outlook and market sentiment

Earnings to Watch This Week:

While earnings season is slowing, a few notable names remain on the calendar:

Broadcom (AVGO) – Expected This Week

Broadcom remains one of the most closely watched earnings reports due to its exposure to semiconductors, networking infrastructure, and AI-related chip demand.

Markets will be watching for:

  • AI semiconductor demand trends

  • Data center and networking infrastructure growth

  • Commentary around hyperscaler spending and enterprise demand

Lululemon Athletica (LULU) – Expected This Week

Lululemon may offer another useful read on consumer spending trends and discretionary retail demand.

Markets will be watching for:

  • Consumer discretionary spending strength

  • Inventory trends

  • Margin performance and forward guidance

With markets currently trading at record highs, investors will likely remain focused on whether momentum continues to broaden across sectors while monitoring how incoming economic data shapes expectations moving forward.

Closing Thought

Markets continued showing resilience last week, supported by strong momentum, continued technology leadership, and improving sentiment around geopolitical developments.

Strong earnings from several closely watched companies—particularly across software, semiconductors, and enterprise infrastructure—added to investor confidence and reinforced many of the themes currently driving market leadership.

Even with economic data reflecting slower growth and persistent inflation, investor confidence remained intact as major indices pushed to fresh highs. As always, periods like this reinforce the importance of maintaining a long-term perspective while staying focused on fundamentals rather than short-term headlines.

Sources

For informational purposes only. This material should not be construed as investment advice.

Trey Kerns https://KernsLegacyPlanning.com
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