U.S. Stock Market Closes at Record High in May, Up Over 8% Since April on Middle East Optimism

According to Jin10, the U.S. stock market closed at historically high levels in May, extending gains since March lows. Investor confidence is strengthening on expectations of the Strait of Hormuz reopening. This week's market moves reflect potential reactions to a potential deal: as hopes grow that the Trump administration is nearing a peace agreement, bond yields fell, oil prices declined, and major indices rallied. The Nasdaq Composite has gained over 8% since late April. Gold prices faced renewed pressure mid-week after the U.S. launched additional strikes on Iran, accelerating selloffs.

Looking ahead to next week, investors will focus on U.S. economic data and labor market health, as a busy economic calendar could significantly impact Federal Reserve rate expectations. Key data releases and potentially weak seasonal performance in June are anticipated to drive market direction.