Optimism Concerning Tech Earnings, Iran Peace Extends Equity Winning Streak: May 29, 2026

Stocks are on track to finish May on a high note as optimism about tech earnings and US-Iran peace extend the equity winning streak to seven consecutive days amidst nine weeks in a row of gains. A blockbuster Dell quarter helped boost AI sentiment and send the Nasdaq 100, S&P 500 and Dow Jones Industrial benchmarks to fresh records this morning even as 9 of the 11 major sectors retreat on the session. Meanwhile, President Trump is working to make a final determination on the Middle East situation, which is reducing geopolitical anxiety and loosening financial conditions via sinking interest rates, dropping crude oil prices and a depreciating greenback. Elsewhere, cyclical commodities are descending, volatility protection instruments are experiencing less demand and cryptocurrencies are nearly flat. Conversely, precious metals and prediction markets are catching bids.

Next Week’s Econ Data to Be Largely Supportive

Next week’s busy domestic economic calendar is poised to be largely supportive of risk assets as June gets underway. There’s a plethora of employment data on schedule that is likely to reflect a cycle that remains underpinned by ongoing hiring momentum that is bolstering consumer spending and business investment. Other publications, including surveys on the manufacturing and services sectors, are positioned to signal accelerating inflationary burdens; however, it appears that Wall Street has decided to view recent elevated price pressures as a one-time shock rather than a problematic issue worth worrying about. Indeed, a significant benefit of a finalized US-Iran peace deal in the near future would be decelerating cost forces, especially as we enter 2027, and favorable base effects begin to materially temper the lofty annualized figures of 2026.

International Roundup

Japan Shores Up Yen as Inflation Slows and Economy Strengthens

Japan recently shored up its declining currency while price pressures in the country’s largest city eased and industrial production expanded, according to data released today. New publications also point to gains in retail spending, consumer confidence, housing starts and the labor market. Construction orders, however, went against the trend. Japan disclosed today that it plowed more than $73 billion into supporting the yen during the past month. It was Japan’s first currency intervention since 2024 and comes as the country’s low interest rates have caused the currency to depreciate approximately 10% relative to the US dollar during the past 12 months. Recent yen weakness combined with higher energy prices have subjected Japan to considerable import inflation. Despite the yen’s weakness, the three versions of the Tokyo Consumer Price Index (CPI), issued prior to the national version of the gauge, pointed to slowing price pressures this month as follows: The broad Tokyo version moderated slightly from its 1.5% year over year (y/y) ascent in April to 1.4% this month. The core city CPI, which excludes certain items with volatile pricing, similarly slowed from 1.5% y/y in April to 1.3%, a more benign print than the 1.5% lift anticipated by a consensus of economists. The Tokyo CPI ex food and energy version depicted no y/y increase. In April, the gauge was up 0.2% y/y. The Tokyo data comes roughly a week after Japan reported that its nationwide core CPI climbed 1.4% y/y in April, considerably below the 1.7% consensus estimate and the slowest pace in four years. The headline CPI, at 1.9% y/y, benefited from subsidies dampening the impacts of surging fuel costs and higher education expenses. Also in April, the country’s unemployment rate fell from 2.7% in March to 2.5%, a stronger print than the economist consensus estimate for a repeat of the preceding result. The ratio of jobs and job applicants was unchanged at 1.18. Industrial production was also encouraging, reversing from March’s 0.4% m/m decline with a 0.8% expansion, according to a preliminary release. A consensus of economists expected a repeat of March’s result. In another encouraging development, April housing starts exceeded the year-ago level by 11.4%. The metric underperformed the estimate for a 14.7% jump but was a reversal from the 29.3% drop in March. In the retail sector, consumers appear strong. April sales were 2.1% above the year-ago level, surpassing the economist consensus estimate for growth to match March’s 1.4% y/y pace. In a related matter, the Household Confidence gauge strengthened from 32.2 in April to 33.6 this month, beating the 32.3 estimate. Construction orders, however, bucked the trend, descending by 32.3% y/y after sinking 14.4% in March.

South Korea Industrial Production Falls

Industrial production in South Korea slipped 0.7% month over month (m/m) in April, missing the economist consensus estimate for a 0.3% northward movement and reversing from the positive 0.6% m/m rate in March. Nevertheless, output was still 1.5% above the year-ago period. Economists estimated that South Korea’s industrial sector would boost production by 2.2% y/y following the March 3.9% climb.