Executive Summary
Global equity markets extended their rally for an eighth consecutive week ending 22 May 2026. The DJIA added 2.13% to a new intraday record of 50,579.70, the S&P 500 gained 0.88% to 7,473.47 and the Nasdaq rose 0.45% to 26,343.97. Small-cap and value stocks outperformed, with the Russell 2000 gaining 0.91%. The week opened with a sharp bond-market shock, the 10-year Treasury yield hitting a one-year high on Monday and pulling equities lower, before Nvidia’s Wednesday results and improving geopolitical signals drove a strong recovery.
Nvidia reported record Q1 fiscal 2027 revenue of $81.6 billion, up 85% year on year, with Data Centre revenue of $75.2 billion up 92%. An $80 billion buyback and a dividend increase from $0.01 to $0.25 per share were also announced. SpaceX filed its S-1 on Wednesday, targeting a $1.75 trillion valuation and a June 12 Nasdaq debut. Brent crude fell 5.24% to $103.54/bbl, its largest weekly decline since the conflict began, on the most credible peace signals to date. Over the weekend, Trump declared a deal “largely negotiated” and 33 ships passed through the Strait of Hormuz with Iranian permission, though the formal blockade remains in place.
Market Snapshot
Weekly performance across major global indices (week ending 22 May 2026):
| Index | Friday’s Closing Price | Weekly Change (%) | Direction |
| DJIA | 50,579.70 | 2.13 | ▲ |
| S&P 500 | 7,473.47 | 0.88 | ▲ |
| NASDAQ Composite | 26,343.97 | 0.45 | ▲ |
| FTSE 100 (UK) | 10,466.26 | 2.66 | ▲ |
| CAC 40 (France) | 8,115.75 | 2.05 | ▲ |
| STOXX Europe 600 | 625.12 | 3 | ▲ |
| Nikkei 225 (Japan) | 63,339.07 | 3.14 | ▲ |
| CSI 300 (China) | 4,845.10 | -0.3 | ▼ |
| Hang Seng (Hong Kong) | 25,606.03 | -1.37 | ▼ |
| Brent Crude | 103.54 | -5.24 | ▼ |
| Gold | 4,521.00 | -0.76 | ▼ |
Foreign Exchange
(For the week ending 22 May 2026)
| Pair | Friday’s Close | Week’s Change |
| EUR/USD | 1.1621 | -0.0041 (-0.35%) |
| USD/JPY | 159.0180 | 0.636 (0.4%) |
| GBP/USD | 1.3433 | 0.0042 (0.31%) |
| USD/CHF | 0.7865 | 0.0023 (0.29%) |
| AUD/USD | 0.7148 | -0.0066 (-0.91%) |
U.S. Markets Overview
The DJIA led with a 2.13% gain as healthcare, industrials and energy outperformed, while the Nasdaq lagged at 0.45% as Monday’s yield spike hit growth names hardest before Nvidia’s recovery took hold. Nvidia’s Q1 fiscal 2027 results were the defining event: revenue of $81.6 billion beat estimates convincingly, Data Centre revenue of $75.2 billion grew 92% year on year, and the $80 billion buyback alongside a dividend increase sent the stock sharply higher.
SpaceX filed its S-1 on Wednesday targeting a $1.75 trillion valuation and June 12 Nasdaq debut. The filing revealed 18,712 Bitcoin on its balance sheet worth approximately $1.29 billion, more than twice what analysts had estimated.
The 10-year Treasury yield hit its highest level in a year on Monday before retreating. By Friday it had fallen 2.6 basis points to 4.558% as Treasuries stabilised on peace signals and position-squaring ahead of the Memorial Day weekend. Markets are closed Monday 25 May.
Post-Close Developments
Trump posted Saturday that a deal with Iran had been “largely negotiated, subject to finalization,” before clarifying Sunday that he had told negotiators “not to rush” and that the blockade would remain until an agreement is “reached, certified, and signed.” At least 33 ships, including oil tankers, passed through the Strait of Hormuz with Iranian permission on Sunday, the most significant practical development since the conflict began.
European Markets
The STOXX Europe 600 surged 3.00%, Germany’s DAX gained 3.92%, France’s CAC 40 rose 2.05% and the FTSE 100 added 2.66%, as peace deal hopes drove the region’s strongest weekly performance since the conflict began. The European Commission cut its 2026 eurozone GDP forecast to 0.9%, down from 1.4% in 2025, citing the energy shock, and raised its 2026 inflation forecast to 3.0% from 1.9%. UK CPI slowed to 2.8% in April, below the 3.0% estimate, aided by an energy price cap.
Asian Markets
Japan
The Nikkei surged 3.14% to a fresh record of 63,339.07. SoftBank extended a 20% Thursday rally with a further 12% gain on Friday after reports that OpenAI and SB Energy are progressing toward U.S. IPOs. Japan’s Q1 GDP grew at an annualised rate of 2.1%, beating the 1.8% estimate.
China
The CSI 300 slipped 0.30% to 4,845.10 and Hang Seng declined 1.37% to 25,606.03, underperforming the global rally. China’s growth trajectory remains the most exposed among major economies to a sustained Strait of Hormuz closure. Any formal reopening would be a significant positive catalyst for Chinese equities.
Commodities
Oil
Brent crude fell 5.24% to $103.54/bbl. The U.S. drew approximately 10 million barrels from the Strategic Petroleum Reserve during the week, the largest such release on record. The formal blockade remains in place pending a certified agreement, keeping the oil price well above pre-conflict levels.
Gold
Gold fell 0.76% to $4,521.00/oz. The Monday bond market spike provided a brief safe-haven bid, but the subsequent risk-on recovery driven by Nvidia earnings and peace deal optimism weighed on the metal. Structural support from central bank buying and unresolved geopolitical uncertainty remains intact.
Crypto
Bitcoin was pressured early in the week by the bond market selloff, before stabilising mid-week as Nvidia earnings improved risk appetite. SpaceX’s disclosure of 18,712 Bitcoin on its balance sheet, worth approximately $1.29 billion, provided a positive narrative lift. Bitcoin closed the week near $76,800.
Week Ahead
The primary focus is the status of the U.S.-Iran deal. Trump’s “largely negotiated” declaration and Sunday’s 33-ship transit are the most significant signals since the conflict began, but the blockade formally remains until an agreement is certified. Any confirmed phase-one MOU and Strait reopening would be the single largest positive catalyst for European equities, global inflation and bond markets simultaneously.
The SpaceX IPO roadshow begins ahead of a June 12 Nasdaq listing. Nvidia’s results, along with continued AI capex data from the hyperscalers, will keep the AI infrastructure theme in focus.
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