Markets In Focus: The Week That Was and What’s On Tap Week-Ending 5/29/2026
THE WEEK THAT WAS
The Week That Was U.S. equities extended their powerful run this week, with the S&P 500 posting its eighth consecutive weekly gain—the longest streak since late 2023. In a holiday-shortened trading week, the S&P 500 rose a robust +1.8. The Nasdaq Composite outperformed with a +2.6% advance, while the Russell 2000 also gained +2.6%, reflecting strong participation from smaller-capitalization stocks. The Invesco S&P 500 Equal Weight ETF (RSP) climbed +2.0%, signaling decent broadening versus the cap-weighted index.
May delivered exceptional returns across the major indices. The S&P 500 surged +6.2% for the month, while the Nasdaq Composite posted an impressive +9.3% gain. The Russell 2000 rose +6.5%, and the RSP advanced +4.2%. These results underscore the sustained strength of the equity bull market, though it has been a somewhat narrow rally, driven by the strength in the AI theme.
The standout fundamental catalyst this week was continued momentum in AI infrastructure spending. Dell Technologies reported exceptional results, with fiscal Q1 revenue reaching $43.8 billion (up 88% year-over-year) and AI-optimized server revenue hitting $16.1 billion. The company raised its full-year AI server revenue guidance to approximately $60 billion for fiscal 2027. This performance underscores tangible enterprise and hyperscaler demand for next-generation computing infrastructure — spanning servers, networking, power solutions, and ecosystem software. Dell’s results reinforce that AI is no longer speculative but a core earnings driver, supporting both mega-cap leaders and the broader technology supply chain. The concurrent outperformance in equal-weight and small-cap indices suggests the rally is broadening, which enhances the durability of this advance.
Markets have continued to climb the wall of worry, absorbing geopolitical tensions and shifting policy expectations with relative ease.
Looking ahead, June will mark Kevin Warsh’s first FOMC meeting as the new Fed Chairman. With inflation data edging higher and the employment picture stabilizing, expectations for a near-term rate cut have diminished. Investors will closely analyze Warsh’s communications for signals on policy direction. Seasonal patterns point to the possibility of a summer lull, yet persistent strength in technology and infrastructure-related fundamentals could support further progress if market breadth remains constructive. The overall tone stays positive as we transition into the new month
THE WEEK AHEAD
As we enter June, U.S. equity markets confront a week that will provide important insights into the durability of the AIdriven expansion and the underlying health of the economy. With valuations remaining elevated in technology and growth-oriented segments, the convergence of key earnings reports and the May employment data will be particularly relevant for long-term investors assessing the sustainability of current trends.
The economic calendar builds steadily toward Friday’s May Nonfarm Payrolls and Unemployment Rate, the week’s most significant release for shaping expectations around economic resilience and Federal Reserve policy. Supporting this, Monday delivers the ISM Manufacturing PMI along with construction spending figures. Tuesday features the JOLTS Job Openings report, Wednesday brings the ADP Private Payrolls estimate, and Thursday includes Challenger Job Cuts data. These indicators together will offer a comprehensive view of labor market conditions heading into the summer.
Earnings season continues with several names of structural importance:
- Monday: Hewlett Packard Enterprise (HPE)
- Tuesday: Palo Alto Networks (PANW), Dollar General (DG)
- Wednesday: Broadcom (AVGO) — a key gauge of AI infrastructure demand, CrowdStrike (CRWD), Macy’s (M)
- Thursday: lululemon (LULU) and Medtronic (MDT)
Reports from Broadcom, Palo Alto Networks, and CrowdStrike should offer valuable perspective on enterprise technology budgets and the pace of AI adoption. Outcomes here will help evaluate the durability of secular themes that underpin many of our core holdings.
DISCLOSURES
The information presented is the opinion of Legacy Bridge, LLC., and does not reflect the view of any other person or entity. The information provided is believed to be from reliable sources, but no liability is accepted for any inaccuracies. This is for information purposes and should not be construed as an investment recommendation. The opinions expressed are subject to change without notice. Reliance upon information in this material is at the sole discretion of the reader. This information is not intended to be complete or exhaustive and no representations or warranties, either express or implied, are made regarding the accuracy or completeness of the information contained herein. This material may contain estimates and forward-looking statements, which may include forecasts and do not represent a guarantee of future performance. Past performance is no guarantee of future performance. Investing involves risks. Legacy Bridge LLC., is an investment adviser registered with the U.S. Securities and Exchange Commission.
The S&P 500 generally represents performance of 500 large companies listed on exchanges in the U. S. It is one of the most commonly followed equity indices. The Nasdaq Composite Index is a market-weighted index that measures the performance of more than 3,000 common equities listed on the Nasdaq Composite Market. The Russell 2,000 Index is a market-cap weighted index that measures the performance of approximately 2,000 of the smallest companies in the Russell 3,000 Index. The MSCI ACWI captures Large and Mid-Cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. With 2,921 constituents, the index covers approximately 85% of the global investable equity opportunity set. FactSet Research System is a financial data and software company that provides research for Wall Street professionals and individual investors.
