Markets and Economic Updates May 2026: Improving Fundamentals Help Stabilize Markets

On May 5th, senior leaders from Hancock Whitney Asset Management hosted their May 2026 Markets and Economic Update Webcast, discussing the sharp rebound in equity markets, ongoing geopolitical developments, and the evolving outlook for the U.S. economy and financial markets.

A key theme throughout the discussion was the contrast between continued geopolitical uncertainty and improving market fundamentals. While tensions in the Middle East and disruptions to global energy infrastructure remain significant concerns, strong corporate earnings, accelerating AI-related capital spending, and resilient economic activity helped support investor confidence during April.

The team also explored the growing role artificial intelligence may play in driving productivity gains and long-term economic growth. At the same time, they noted that inflation pressures tied to higher energy prices, uncertainty surrounding Federal Reserve leadership, and ongoing fiscal negotiations in Washington remain important risks for markets moving forward.

Watch the May 2026 Markets and Economic Webinar

Webcast Highlights: Key Takeaways

• “April was practically a record month for equities, with one of the strongest monthly returns for the S&P 500 since the Great Depression."
• “Corporate earnings growth was far stronger than expected, and importantly, the strength was broad based across sectors.”
• “We are still in the early stages of a longer-term AI capital expenditure cycle that could be transformational for productivity and economic growth.”
• “Core GDP growth has remained remarkably stable, reinforcing the picture of an economy that continues to expand despite recent disruptions.”
• “The biggest near-term headwind remains the oil price shock and its impact on inflation and consumer spending.”
• “The Federal Reserve is likely to remain on the sidelines as policymakers assess inflation pressures and the evolving geopolitical backdrop.”
• “The outlook for stocks has improved as profit margins remain strong, earnings expectations continue to rise, and business confidence improves.”
• “Even if geopolitical tensions begin to ease, damage to global energy infrastructure could affect supply conditions for an extended period.”

We encourage you to listen to the full recording for deeper insight into how these developments may influence markets and portfolio positioning in the months ahead.

Disciplined investing is more important now than ever.

Our Asset Management team at Hancock Whitney is ready to help you align your portfolio to weather uncertainty and pursue long-term goals. Contact your Private Banker today.

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