Market Recap - Week of May 4 - 8, 2026

Gordon Achtermann
2 days ago
3 min read

The S&P 500 index rose 2.3% this week to another round of new highs as the technology sector climbed on deals and earnings.

The S&P 500 ended Friday's session at 7,398.93, marking its latest all-time closing high. The market benchmark also set a fresh intraday high on Friday at 7,401.50, its sixth consecutive week of gains. The index is up 8.1% for the year.

This week's advance came as deal chatter and better-than-expected earnings drove strong gains in the technology sector. The deals included a preliminary agreement under which Intel (INTC) will make some of the chips powering Apple (AAPL) devices, according to a Wall Street Journal report citing people familiar with the matter.

Also, payroll data from the Bureau of Labor Statistics showed the US economy added more jobs than projected in April. This helped allay concerns about a slowdown in the labor market. Investors also saw the data as likely allowing the Federal Reserve to stick to its current policy stance.

Nonfarm payrolls for April rose by 115,000, well above the 65,000 increase expected in a Bloomberg-compiled survey. Private payrolls growth slowed to 123,000 in April from 190,000 the month prior. The unemployment rate was unchanged at 4.3% in April, in line with Wall Street's estimates. Prior months' reports were revised down (as nearly always under this administration) by 16,000 jobs.

The technology sector jumped 7% for the week.

On the downside, the energy sector fell 5.4%, followed by a 4% loss in utilities.

Last Week’s Economic Reports

The U.S. economy expanded at an annual rate of 2.0% in the first quarter of 2026. This was below expectations, but better than last quarter. Investment was up 8.7% year-over-year, driven largely by the AI buildout and data center expansion.
For the quarter, PCE price index (core inflation) increased 4.5% annually, with core excluding food and energy up 4.3% - more than double the Fed's 2% target. (Bureau of Economic Analysis)

Up Next

Economic data will include the April consumer and producer price indexes. Retail sales, existing home sales, import prices, and industrial production for April will also be among the reports.

S&P 500 Stylebox and Sector Returns

Once again, I'll note that so far this year, value has outperformed growth across the board, and it's not even close for large and midsize companies.

How to read the stylebox: The horizontal axis represents investment style, which can be value, blend, or growth for stocks and mutual funds. The vertical axis represents market capitalization for stocks, categorized into large, medium, and small companies. The number in each box represents the percentage growth of the category at the intersection of the column and row. For example, large-cap value is in the top-left corner box of the 9 boxes, so the large-cap value category is up (or down) by the percentage shown in that box.

Thought of the Week

The Strait of Hormuz has been closed since the U.S.-Iran conflict began, cutting off the world’s most important energy chokepoint. The result has been higher global energy prices, with WTI crude peaking at $112 per barrel, and increased scrutiny of countries’ strategic petroleum reserves, as import-dependent economies receive less oil at a significantly higher cost.

Many countries appear well-positioned in terms of net import coverage. Several Asian economies reliant on imports have among the highest reserve coverage globally, with Japan and South Korea holding more than 200 days of reserves. Despite having the world’s largest reserves, China has coverage similar to that of Europe and Taiwan, at roughly 120 days. The U.S. holds the second-largest oil reserves globally but is a net oil exporter, making comparisons less relevant.

Following the closure, the International Energy Agency (IEA) announced its largest emergency oil stock release on record, with 32 member countries set to release 400 million barrels over the coming months, more than twice the amount released during the 2022 Russia-Ukraine conflict.

Strategic reserves are not designed to eliminate energy shocks, but to provide temporary flexibility during periods of disruption. During geopolitical crises or supply chain interruptions, the ability to stabilize domestic markets and support critical industries becomes increasingly valuable.

Finally, while the release may appear substantial, the world consumes roughly 100 million barrels of oil per day, about 20% of which flows through the Strait of Hormuz. This is equivalent to roughly 4 days of global consumption or 20 days of Strait flows, which underscores the importance of reopening the Strait.

Source: JP Morgan (edited)

Thank you to all who attended this month's market Update webinar!

You can watch the replay here:

Spirit Airlines Bankrupt & Tim Cook Steps Down – Monthly Market Update Webinar – May 2026

The episode is also available wherever you listen to podcasts!