WEEKLY MARKET RECAP – May 8, 2026

The S&P 500 and NASDAQ extended their winning streaks to six straight weeks as stronger-than-expected earnings growth pushed both indexes to new record highs. The NASDAQ led with a 4.5% weekly gain, while the S&P 500 rose 2.4%. The Dow underperformed, finishing little changed.

Corporate profits continued to surprise to the upside as earnings season neared completion. According to FactSet, first-quarter earnings for S&P 500 companies are now projected to increase 27.7% year over year based on reported results and estimates for the remaining companies. At the end of March, analysts had expected growth of only 13.1%, making the current pace the strongest since the fourth quarter of 2021.

The labor market also showed resilience. The U.S. added 115,000 jobs in April, exceeding expectations and following an upwardly revised gain of 185,000 in March. The back-to-back increases came after a prolonged stretch in which monthly payroll data alternated between gains and losses. The unemployment rate held steady at 4.3%.

Growth stocks continued to outperform value shares, with a large-cap growth benchmark beating its value counterpart for the fifth time in six weeks. Over that period, the growth index gained nearly 20%, compared with an 11% increase for value stocks, narrowing value’s earlier lead for the year.

Oil prices remained volatile as developments in the Middle East continued to shift investor sentiment. U.S. crude briefly climbed to $107 per barrel on Monday before falling to $89 by Wednesday. By Friday afternoon, oil traded near $95, down about 5% for the week.

The spike in energy prices early in the week briefly reignited inflation concerns, pushing the 30-year Treasury yield above 5.00% for the first time in nearly 10 months. However, yields later eased, and both the 10-year and 30-year Treasury rates finished slightly lower for the week at 4.37% and 4.95%, respectively.

Consumer confidence weakened further. The University of Michigan’s preliminary May sentiment index fell to 48.2 from April’s final reading of 49.8, continuing a decline from February’s recent high of 56.6 as higher energy costs weighed on sentiment.

Investors will turn their attention to Tuesday’s Consumer Price Index report for signs of whether inflation pressures intensified in April. March CPI showed annual inflation accelerating to 3.3% from 2.4% in February, driven in part by a 12.5% year-over-year jump in energy prices.