Investment Week at a Glance
Stocks finished higher for the week. The Dow Jones Industrial Average was up 0.9%, the S&P 500 was up 1.4%, and the NASDAQ rose 2.4%. Foreign stocks (MSCI EAFE) were also up for the week, rising 0.9%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.47%. (Data source: Wall Street Journal)
Hopes of Peace Push Markets Higher
Markets made new highs last week as talks of a peace deal in Iran have continued to gain momentum. This marks 9 straight weeks of gains for the S&P 500. Oil prices also fell to $87, and the bond market was positive again. Investors are watching closely as the possible reopening of the Strait of Hormuz could push oil prices even lower. On the other hand, a renewed conflict could send things in the opposite direction they are heading. Markets will look to continue this historic stretch of gains, as we have seen nearly a 20% bounce in 2 months.
AI Investment Drives Growth
AI investment continues to increase as companies look to come out of this AI arms race a winner. Investment in informational processing equipment, software, and R&D has all increased drastically, contributing 1% to headline GDP growth over the past year. This is the first time we have seen that happen since the late 90s. These investments won’t all work out, and in time, the market will pick the winners and losers of this AI boom. This technology is likely going to cause a productivity boom, which is why investors and companies are so enthusiastic about its potential.
Starbucks Stock Up Over 17% Year to Date, As CEO Brian Niccol Approaches 2nd Anniversary at the Company
Starbucks (SBUX), one of the most recognizable brands in the country, has had a great year so far, with its stock price rising over 17% in the first five months of 2026. On April 28th, Starbucks reported its 2nd quarter financials for the fiscal year, beating analysts’ estimates for both revenue and earnings per share (Starbucks Investor Relations). This encouraging financial sign for Starbucks came about a year and a half after former Chipotle CEO Brian Niccol assumed the CEO role and launched his “Back to Starbucks” turnaround plan. His plan included closing nearly 400 unprofitable locations and removing mobile-only pickup stores. Niccol also brought back the self-serve condiment bar and emphasized in-store seating, two measures implemented to enhance the customer experience. Starbucks’ next earnings date is anticipated for the end of July, and it should further reveal to investors the impact of Niccol’s “Back to Starbucks” plan on the company’s financial statements (CNBC).
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Quiz
What highly anticipated IPO (initial public offering) is expected to occur later this month? (Scroll Down for Answer)
- OpenAI
- Anthropic
- Inspire Brands
- SpaceX
Answer:
4. SpaceX. While all the companies included above are expected to go public later this year, SpaceX is expected to IPO on June 12th with a valuation of around $2 trillion, making it one of the largest companies by market cap in the United States. SpaceX is expected to join the NASDAQ 100 in early July and be in the S&P 500 index by the end of the year. These IPO’s will make these private companies accessible to all investors.
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