US stocks finished the week with gains as the S&P 500 secured its longest winning streak since 2023, even as uncertainty persists regarding US-Iran peace negotiations.

Key Points

• The S&P 500 rose 0.4% on Friday, marking eight consecutive weeks of gains for the index.
• Kevin Warsh was sworn in as the new Federal Reserve Chair, taking over a four-year term amid ongoing inflation concerns.
• Dell and HP shares surged to all-time highs following strong PC sales data reported by Lenovo.
• IBM stock continued to rally after securing a $1 billion government grant to build a quantum chip manufacturing foundry in New York.
• Consumer sentiment hit a record low of 44.8 in May, driven by rising gas prices and persistent inflation expectations.
• Estée Lauder shares jumped 10% after merger negotiations with Spanish beauty group Puig collapsed.

Why it Matters

The market's resilience reflects investor optimism despite significant geopolitical tensions and record-low consumer sentiment regarding the cost of living. While the bond market remains stable, the broader economic outlook depends heavily on whether the new Federal Reserve leadership can manage inflation without derailing corporate earnings growth.