HOTLINE
Hotline Archive
May 29, 2026
This is John Bonnanzio with a Fidelity Monitor & Insight Hotline update for Friday evening, May 29.
There are no model portfolio trades advised.
Note: We did make changes in our Unique Opportunities Model on Tuesday May 26, selling our entire position in Equity-Income [FEQIX]. One-third of the proceeds were used to increase our stake in Mega-Cap Stock [FGRTX], while the remaining two-thirds were used to establish a new position in OTC Portfolio [FOCPX]. After running with a defensive value-leaning mix in the first quarter, these moves return the portfolio to a growth-oriented stance.
In a holiday-shortened week of trading, stocks continued to do what they’ve been doing most of this year: setting record highs. They have done so on days when it appeared that a peace deal with Iran was at hand, and they have done so when such a deal appears elusive. This week on Thursday, the S&P 500 scored yet another record close even as an inflation report showed prices accelerating to a 3-year high against a background of gas prices rising and consumer confidence falling. But with chip stocks rallying, investors looking forward to the SpaceX IPO and the earnings outlook remaining strong, little else has mattered to institutional and retail investors alike. (Though Thursday evening’s explosion of a Blue Origin rocket during a static fire test did rattle space-related stocks today.)
For the week through Friday’s close, the Nasdaq Composite gained 2.4% versus 1.4% for the S&P 500. During the same period the more economically sensitive Dow Industrials rose 0.9%. As for the more interest-rate-sensitive small-cap Russell 2000 and its Midcap cohort, they rose 1.8% and 1.3%, respectively.
European stocks were lackluster performers this week: London’s FTSE 100 was fractionally lower (down 0.5%), though the more diversified Stoxx Europe 600 eked out a gain of 0.1% – a result of French shares rising 0.8%.
Also overseas, Japan’s Nikkei 225 scored a series of record highs amid a convergence of good news including some related to AI: A chip-testing manufacturer and an equipment maker were among the country’s tech leaders whose sales and earnings are benefiting from the construction of U.S. data centers. In addition, investors embraced the prospect of Mideast peace, which could increase the odds that oil shipments to Japan may soon resume through the Strait of Hormuz.
On that score, a barrel of West Texas Intermediate plunged 9% this week to $87.76 a barrel. Notably, easing military tensions drove oil prices down 17% in May (though they’re up more than 50% for the year).
With crude prices easing this past month, most investors expect the recent acceleration in inflation to fall off, too. While Treasury bond yields rose in May, the past four days greatly benefited fixed-income securities. In the case of the benchmark 10-year Treasury, its yield dropped 11 basis points to 4.45%. (Bond prices move inversely to their yields.)
| Our model performance as of Friday's close is listed below: | ||
|---|---|---|
| Week | YTD | |
| S&P 500 | + 1.4% | + 11.3% |
| Barclays US Aggregate Bond | + 0.8% | + 0.5% |
| Income Model | + 0.9% | + 4.4% |
| G&I Model | + 0.9% | + 7.9% |
| Growth Model | + 1.4% | + 13.1% |
| Select System | + 2.0% | + 15.7% |
| Unique Opportunities Model | + 1.3% | + 11.9% |
A more complete discussion of May’s market will be provided in the June newsletter, which will be posted on our website June 1. (late in the day)
Our next regularly scheduled Hotline update is Friday evening June 5.
Fidelity Monitor & Insight's Hotline is updated on Friday evenings or whenever the Dow moves 1,000 points or more in either direction.