S&P 500 extends winning streak to eight weeks after recent record high

The S&P 500 finished the week ended May 22 with an eighth consecutive weekly gain, extending its longest winning streak since December 2023 as investors weighed a more hawkish tone from Federal Reserve officials and a fresh drop in U.S. consumer sentiment. The benchmark index still added to recent gains after touching a record high earlier this month, according to market coverage from Benzinga and other financial outlets. The move came even as Fed minutes pointed to a higher bar for rate cuts and the University of Michigan reported a record-low reading on household sentiment. U.S. markets closed Monday, May 25, for the Memorial Day holiday. ### How did stocks keep rising with the Fed sounding more hawkish? Federal Reserve minutes released on May 20 showed officials at their April 28-29 meeting were more concerned that inflation could stay elevated, with some policymakers open to a rate increase if price pressures failed to ease. The minutes said uncertainty had risen and described inflation risks tied in part to higher energy costs. Benzinga reported that investors continued to push equities higher despite that backdrop, with the S&P 500 on track for its eighth straight weekly advance by Friday. Yahoo Finance and Barron’s also reported that the index closed higher on May 22 and locked in its longest weekly winning streak since 2023. ### What did the consumer sentiment report show? (federalreserve.gov) The University of Michigan’s Surveys of Consumers said on May 22 that its final consumer sentiment index for May fell to 44.8 from a preliminary 48.2 and from 49.8 in April. That was described as an all-time low in reports citing the survey. CNN, citing survey director Joanne Hsu, reported that high living costs remained a central concern for households, while the Michigan survey site said long-run inflation expectations rose to 3.9% in May from 3.5% in April. (benzinga.com) Those figures added to concern that consumers were bracing for higher prices even as stocks kept climbing. ### Was the market rally broad, or just a headline streak? (cnbc.com) The Dow Jones Industrial Average rose to a record close on May 22 while the S&P 500 and Nasdaq Composite also ended the week higher, according to Barron’s, Yahoo Finance and Schaeffer’s. Yahoo Finance reported weekly gains of 0.8% for the S&P 500, 2.1% for the Dow and 0.4% for the Nasdaq. (cnn.com) The same reports said Treasury yields eased late in the week, helping support equities. The Motley Fool’s market recap also said oil prices dipped slightly on Friday, giving investors some relief after recent volatility tied to the Middle East. ### Why did weak sentiment not stop the advance? (barrons.com) Markets often trade on several inputs at once, and on May 22 lower bond yields and continued momentum in large-cap stocks appeared to offset the negative signal from consumer confidence data. Benzinga framed the week as one in which equities absorbed both hawkish Fed messaging and deteriorating sentiment without breaking the rally. (fool.com) The Fed minutes did not announce an immediate policy change, and reports on May 22 showed investors were still focused on the timing of the next move rather than reacting to a single data point. That left the S&P 500 able to extend its streak even as economic signals looked more mixed. ### What comes next for investors watching this streak? The Federal Reserve’s next policy decision is scheduled for June 17, according to the meeting dates referenced in market coverage on May 22. (benzinga.com) Traders will also be watching whether future inflation and spending data confirm the weakness seen in the University of Michigan survey and whether the S&P 500 can hold gains after its eight-week run. (federalreserve.gov)