Looking Ahead: June 1, 2026

The Dow Jones Industrial Average (Dow), S&P 500, and Nasdaq Composite (Nasdaq) indexes all closed at record highs.

Last Friday marked the final trading session of May, and all three major averages notched gains. The Nasdaq outperformed, recording an advance of more than 8% for the month, and has surged 16% so far this year. The S&P 500 finished up 5% in May, up more than 10% year-to-date, while the Dow posted an almost 3% monthly climb.

The three major indexes were led by the Nasdaq’s weekly gain of more than 2%. The S&P 500 rose more than 1%, while posting its ninth-consecutive weekly win, the longest such streak since December 2023. The blue-chip Dow closed above 51,000 for the first time, notching a gain of slightly less than 1% last week.

The second reading of first-quarter (Q1) Gross Domestic Product (GDP) was revised down from 2.0% to 1.6%, below expectations.

Amid a softening labor market, consumer confidence declined modestly as sentiment regarding current conditions fell to a three-month low.

The Personal Consumption Expenditures (PCE) Deflator continued to rise in April, boosting the annual inflation pace while personal income was stable and consumer spending rose modestly amid elevated prices.

New single-family home sales declined month-over-month (M/M) amid rising mortgage rates. While durable goods orders increase significantly.

West Texas Intermediate crude oil futures closed down 1.73% to $87.36 per barrel last Friday. Brent crude dropped 1.77% to close at $92.05. The U.S. benchmark saw its biggest monthly decline since April 2025 as prices dropped nearly 17%.

The Treasury yield curve flattened last week, as reports suggest a U.S. – Iran ceasefire deal has been reached, and is waiting final approval. The 10-year Treasury yield slipped two basis points last Friday to 4.44%.

Last Friday, shares of Micron Technology and Qualcomm rose 5% and 3%, respectively, adding to their recent gains. Micron jumped almost 88% in May, while Qualcomm rose close to 40%.

There will be some important economic data released in the coming week, with labor the key theme. The ADP National Employment Report drops Wednesday, weekly jobless claims data are due Thursday and the all-important U.S. jobs report will arrive Friday. In addition, the latest Federal Reserve (Fed) Beige Book is set for Wednesday and the Institute for Supply Management’s Manufacturing PMI reading for May is due on Monday.

Noteworthy earnings reports due in the week ahead include results from the likes of Broadcom (AVGO), GitLab (GTLB) and cybersecurity giants Palo Alto Networks (PANW) and CrowdStrike (CRWD).

Click the Looking Ahead link below, and you will find a report written by Wells Fargo. Below are excerpts from that research.

Week review: May 25-29

Economic news

• April’s PCE data suggested inflation remains elevated, with price gains reaching a three-year high. Meanwhile, core PCE aligned with expectations, as consumers continued to maintain spending amid inflation.
  • Headline PCE increased 0.4% M/M and 3.8% year-over-year (Y/Y).
  • Core PCE increased 0.2% M/M and 3.3% Y/Y.
  • Personal income was flat as consumer spending increased 0.5% M/M and 5.9% Y/Y.
• Durable goods orders in April jumped 7.9% M/M, the strongest increase since May 2025. Core capital goods orders rose 1.1% M/M, suggesting soft resilience in business investments.
  • The rise in new orders was driven by strong demand for transportation equipment, which rose 21.5%.
  • U.S. defense orders surged to its second-highest level on record. The defense share of total capital goods orders over the past year rose to 15%, driven by heightened global military demand amid the Iran war.
• Housing data in April showed a setback, as buyers faced rising mortgage rates and affordability constraints.
  • New home sales declined 6.2% M/M to an annualized 622,000 as builder incentives failed to motivate buyers. Contract signings declined significantly in the south, the largest U.S. home-selling region.
  • The Federal Housing Finance Agency House Price Index (FHFA HPI) rose modestly at 0.1% M/M, matching expectations.
• The second print of Q1 GDP was revised down to an annualized 1.6%, below expectations of 2.0%. Growth in business and domestic private investments supported the expansion, up from 0.5% in Q4 2025.
• May’s consumer confidence index from the Conference Board fell slightly M/M to 93.1, primarily reflecting rising prices, tied to the Iran war, with 2/3 of consumers reporting temporary reductions in spending.

Looking Ahead to this week: June 1-5

U.S.

• The focus early in the week will be on the ISM’s May manufacturing and services PMIs on Monday and Wednesday, respectively, before attention shifts to Friday’s May jobs report. Other labor market updates include the May ADP survey of private employment and Challenger job cuts report, along with the April Job Openings and Labor Turnover Survey (JOLTS) and finalized Q1 non-form productivity and unit labor costs.
• Also on tap: the Fed’s Beige Book survey of regional economic conditions and April’s consumer credit, factory orders, and construction spending, along with May’s vehicle sales.

Asia

• In China, the highlight of the week will be private May PMIs for both manufacturing and service sectors.
• From Japan, look for May’s monetary base and finalized manufacturing PMI; Q1 capital spending and company sales; and April’s labor cash earnings, household spending, and preliminary leading index.
• Elsewhere in the region, Taiwan’s and South Korea‘s manufacturing PMIs will hit the tape, along with the latter’s May trade balance and Consumer Price Index (CPI).
• Also, be on the lookout for Australia’s Q1 GDP, April trade balance and building approvals, and a gauge of May inflation.

Europe

• In Europe, the highlight will be the Eurozone’s preliminary CPI for May, finalized CPI for the region, along with the bloc’s April retail sales, unemployment rate, money supply, and Producer Price Index.
• Also on tap: the eurozone’s Q1 household consumption, third reading of GDP, and final reading on employment.
• From France, look for April’s industrial production and trade balance, while Germany releases their retail sales.
• Data out from the U.K. includes April’s mortgage approvals, consumer credit, and money supply, in addition to May’s house prices, reserves changes, and new car registrations.