May 18 Update

Last week the stock market was little changed.  There was some major news led by President Trump’s trip to China and an apparent breakdown in negotiations with Iran.  The averages were little changed except for the Russell which was down 2.4% for the week.  The Nasdaq overtook the Russell for the best performing major index.

The S&P 500 has set 14 new record highs in the past month. 

Beyond the geopolitical headlines, AI trade still dominates.  Remove tech from the S&P 500, the index is up around 3%. 

Earnings estimates are increasing.  The consensus forecast is for 8% growth for S&P 500 earnings for 2026 and 2027.  But remove tech and energy sectors from those calculations and the earnings forecasts are flat. 

This week’s big news is Nvidia’s earning report on Wednesday.  Also, the SpaceX IPO filing is supposed to be filed this week.  The IPO is scheduled around June 12.