Week 23: Markets hold steady, volatility retreats
A shortened week, record highs, and a VIX that finally blinked. Here's what happened and how our model portfolios responded.
Market Overview
US markets opened the week with Monday's Memorial Day closure, but investors wasted little time making up ground. Equities extended their rally through the remaining four sessions, driven by a technology sector buoyed by strong earnings and continued AI enthusiasm. Micron Technology was the standout, surging roughly 19% on the back of robust results that reinforced the broader semiconductor narrative.
The mood was not uniformly bullish, however. Fresh geopolitical developments tied to the Iran conflict introduced periods of consolidation, and a higher-than-expected inflation print reminded markets that the Federal Reserve's job is not yet done. Futures markets are now pricing approximately a 50% probability of another rate rise by December — a meaningful shift from where consensus sat just a month ago. Consumer and materials sectors provided support alongside tech; energy, utilities, and industrial services lagged.
For the week, the S&P 500 gained 1.3% and now sits up 10.6% year-to-date.
