Peakfolio Team
May 26, 2025
Between May 19 and May 26, U.S. markets moved sideways as lighter trading volume and mixed economic data marked the unofficial start of the summer season.
The week opened with modest gains, supported by optimism in technology and communication stocks, but momentum quickly faded as investors digested uneven housing and consumer-spending reports. With few major catalysts, the S&P 500 and Dow Jones ended nearly flat, while the Nasdaq managed a slight advance on strength in semiconductor and software shares. Analysts noted that while sentiment has improved compared to early spring, enthusiasm remains tempered by lingering inflation concerns and cautious corporate guidance.
Overall, investors appear content to wait for clearer direction from the Federal Reserve’s next policy update in June. As liquidity typically thins heading into the summer months, many expect a period of consolidation rather than major volatility. Still, underlying resilience in earnings and employment continues to offer a stabilizing backdrop as the market transitions into the mid-year stretch.