SUMMARY:
Equities rallied on the week, with the Nasdaq leading at +2.37%, the S&P 500 adding +1.58%, and the Dow gaining +0.76%, as the 10-year Treasury yield fell -12 basis points to 4.45%. Economic data was mixed, with Conference Board Consumer Confidence edging down -0.7 points to 93.1 in May, still above the 92.0 estimate, MBA Mortgage Applications falling -8.5% for the week ending May 22nd, and the Leading Economic Index nudging up +0.1% in April. Initial Jobless Claims rose to 215,000, Q1 GDP was revised down to +1.6% against a +2.0% estimate, and New Home Sales slipped -6.2% in April. The PCE Index rose +3.8% year over year and +0.4% month over month, reinforcing the Fed’s hawkish tilt; markets are now pricing a +58% probability of a rate hike in December and have nearly fully priced in +1 hike by early Q2 2027. On the corporate side, Micron (NYSE: MU) surged +19% after crossing a $1 trillion valuation, Snowflake (NYSE: SNOW) soared +36% on knockout earnings and a $6 billion AWS deal, Nvidia (NYSE: NVDA) CEO Jensen Huang unveiled a $150 billion spending plan and a new Taiwan campus, SpaceX was awarded a $2.29 billion military satellite contract, and American Airlines (NYSE: AAL) announced Starlink across 500+ narrow body aircraft. Risk assets sold off, with WTI Crude tumbling -7.6% amid Iran peace negotiations, spot silver -1.3%, spot gold -0.95%, and Bitcoin -4.7%, while the dollar slipped -0.2% on the week.