Stock Market This Week (May 18–22, 2026): Dow Hits Record as Nvidia Roars

The Week at a Glance

US stocks ground higher through a choppy four-day stretch that ended with the Dow Jones Industrial Average notching a new record close. The S&P 500 (SPY) added roughly 67 points, or 0.9%, on the week to finish at 7,473.47 — its eighth consecutive weekly gain, the longest such streak since late 2023. The Dow (DIA) climbed 2.1% to close at 50,579.70 after a 294-point rally Friday, while the Nasdaq Composite (QQQ) tacked on 0.5% to 26,343.97. The small-cap Russell 2000 (IWM) outperformed, advancing about 1.7% to extend its year-to-date total return to roughly +15.0%.

Year-to-date scoreboard through May 22 (vs. 2025 year-end closes of 6,845.50 S&P, 48,063.29 Dow, 23,241.99 Nasdaq): S&P 500 +9.2%, Dow +5.2%, Nasdaq +13.4%, Russell 2000 +15.0%. The dominant theme: a relief slide in Treasury yields from the prior week's multi-decade highs combined with Nvidia's blowout quarter to override a soft consumer sentiment print.

Volatility, Rates, and Commodities

The CBOE Volatility Index (VIX) opened the week near 19.1 as Monday's risk-off action took hold, then drifted lower to close Friday around 16.5, with an intraweek range of 16.4–19.6. The 10-year Treasury yield, which had spiked to 4.60% the prior week on supply concerns, settled back to 4.56% by Friday's close (down ~4 bps on the week). The 30-year, which briefly cleared 5.00% intraday Monday, finished near 4.97%. The 2-year yield eased ~6 bps to 4.02%, steepening the 2s10s curve to roughly 54 bps.

WTI crude (CL=F) tumbled about 2.5% to settle just below $99/bbl after reports of progress on US–Iran nuclear talks raised the prospect of fresh supply. Gold (GC=F) eked out a 0.4% weekly gain to roughly $3,310/oz while the US dollar index (DXY) slipped 0.4% to 99.7. Bitcoin (BTC-USD) traded in a tight range around $109,000.

Weekly Sector Performance: GICS Scorecard

Energy was the clear laggard as crude's slide on Iran-deal speculation dragged on the entire complex. Industrials and Financials led the tape as cyclicals tracked the Dow's run to a record. The 9-of-11 sectors finishing green was the broadest weekly breadth since mid-April.

Biggest Stock Movers This Week

NVDA — Another quarter for the record books. Nvidia delivered fiscal Q1 2027 revenue of $81.6 billion, up 85% year-over-year, with Data Center revenue alone at $75.2 billion (+92% YoY). EPS came in at $1.87 vs. the $1.78 consensus. Management guided Q2 revenue to $89.1–$92.8 billion — well above the $87.3 billion Street estimate — raised the quarterly dividend from $0.01 to $0.25, and authorized an additional $80 billion in buybacks. Shares jumped ~6% in after-hours Tuesday and finished the week up about 4.8%, pulling the broader AI complex higher.

PANW — Cybersecurity hits an all-time high. Palo Alto Networks tagged a record close May 21 after fiscal Q3 results beat on platformization wins and 32% growth in next-gen security ARR. Shares finished the week up roughly 5%.

TGT — Discretionary cracks deepen. Target cut its full-year comp sales outlook to flat-to-down-1% and guided FY EPS to $7.75–$8.75 (vs. ~$9.10 consensus), citing soft discretionary demand. The stock skidded roughly 8% on the print.

HD — Resilient despite the housing chill. Home Depot's Q1 comps fell 0.3% but transactions held steady; the company reiterated FY guidance for 1% comp growth. Shares slipped about 0.7% on the week.

LOW — Pro outpaces DIY. Lowe's reported a comp decline of just 1.1%, narrower than the 1.9% feared, and flagged ongoing strength in Pro contractor demand. Shares finished up roughly 2.4%.

WDAY — Back-office AI tailwinds. Workday beat Q1 estimates on both lines, raised subscription revenue guidance, and highlighted accelerating uptake of its Illuminate agent suite. Shares rallied around 9% Friday.

ZM — Buybacks and an upgraded outlook. Zoom beat Q1, raised the full-year outlook, and authorized an additional $1 billion in repurchases. The stock advanced about 4%.

Macro & Policy

The data calendar was thin but uneven. Initial jobless claims fell to 209,000 for the week ending May 16 (vs. 212K prior, 210K est.), while continuing claims edged up to 1.78 million. April Housing Starts showed single-family permits sliding 2.6% to a 872,000-unit pace, the steepest drop in nearly a year. April Existing Home Sales landed at a 4.02 million annualized pace, near a 14-year low. The preliminary May University of Michigan Consumer Sentiment slumped to 44.8 from 49.8 (vs. 48.0 expected) — the third straight monthly decline — with year-ahead inflation expectations spiking to 7.3%.

There was no FOMC meeting, but Powell, Williams, Daly, Bostic, and Waller all reiterated patience on rate cuts and pointed to sticky services inflation. Fed funds futures still price the first 2026 cut for September with ~38 bps of total easing by year-end. The Treasury complex stabilized after the prior week's auction-driven yield spike, when the 30-year sold at 5.046% — the first time since 2007 that a 30-year auction cleared above 5%. Headlines pointing to a "near-final" US–Iran nuclear framework pulled crude and term premiums lower into Friday's close.

Earnings Season Snapshot

With roughly 96% of S&P 500 companies now reporting Q1 2026, the blended earnings growth rate stands at +12.6% YoY — the third straight quarter of double-digit growth. 77% of reporters have topped EPS estimates and 62% beat revenue forecasts, per FactSet-tracked aggregates. AI-infrastructure exposure remains the standout theme: hyperscaler capex commentary continues to track higher, while retailers are splitting sharply along the discretionary/staples divide. Health Care remains the season's weakest sector, with managed care guides under pressure from elevated utilization.

What to Watch Next Week (May 26–29)

US markets are closed Monday for Memorial Day, condensing the calendar into a four-day week.

• Earnings: CRM (Wednesday after close), CRWD, DELL, MRVL, MDB, LULU, COST, and BBY — a cybersecurity, AI-hardware, and consumer trifecta.
• Economic data: April core PCE inflation (Friday) — the Fed's preferred gauge; Q1 GDP second estimate (Thursday); April durable goods, pending home sales, and Conference Board Consumer Confidence (Tuesday).
• Fed speakers: Kashkari Tuesday, Williams and Bostic Wednesday, Daly and Cook Thursday. FOMC minutes from the April 30 meeting drop Wednesday at 2:00 PM ET.
• Treasury auctions: $69B 2-year and $70B 5-year notes Tuesday; $44B 7-year note Wednesday — closely watched for signs demand has stabilized after this month's term-premium scare.
• Geopolitics: Continued Iran-deal headlines plus the G7 finance ministers' meeting in Banff, where coordinated tariff and FX rhetoric is expected.