The Dow Jones Industrial Average (Dow) gained 0.7 percent, the Standard & Poor’s 500 Index (S&P 500) added 0.7 percent, and the Nasdaq Composite Index (Nasdaq) finished up 0.7 percent for the week ending June 12. Sector breadth was positive with nine of the 11 S&P sector groups closing higher. The materials sector led the gains (3.0 percent), followed by consumer staples (2.6 percent) and financials (2.0 percent). On the downside, communication services (-1.9 percent) was the worst performing.

The Dow Jones Industrial Average (Dow) added 0.9 percent, the Standard & Poor’s 500 Index (S&P 500) gained 1.4 percent, and the Nasdaq Composite Index (Nasdaq) tacked on 2.4 percent for the week ending May 29.

*See below for Index Definitions

Market Observations: 6.8.2026–6.12.2026

The S&P 500 finished the week higher and has now gained in 10 of the past 11 weeks. Driving the gains was a pullback in the price of oil reflecting building hope for a diplomatic solution to end the conflict between the United States and Iran.

Economic Roundup: According to a report from the Labor Department, consumer inflation accelerated in May to the fastest pace in more than three years as the Iran war pushed up energy prices. The Consumer Price Index (CPI) climbed 0.5 percent from April, while the underlying core inflation gauge, which excludes food and energy, rose a less-than-expected 0.2 percent from the prior month. More than half of the advance in the overall CPI was due to higher energy costs, but prices in some categories like transportation services, health insurance, and new vehicles fell. A separate report from the Labor Department showed the Producers Price Index (PPI) rose 1.1 percent in May while core PPI prices gained 0.4 percent, resulting in year-over-year headline inflation of 6.5 percent while the core held at 4.9 percent. Initial jobless claims unexpectedly rose to the highest since February, potentially reflecting the usual volatility around school summer breaks and holidays. Initial claims increased by 4,000 to 229,000 in the week ended June 6. The median forecast called for 220,000 applications. Continuing claims, a proxy for the number of people receiving ongoing benefits, rose to 1.8 million from 1.77 million in the prior week.

Outlook: While the outlook through the end of the year remains favorable, tactically it wouldn’t be surprising if the market were to take a bit of a breather following the strong gains off the March 30 lows. In the near term, headline risk around Iran and worries over inflation are likely to result in choppy trading activity, although based on what we feel is a still favorable macroeconomic environment, we believe the market offers a solid risk/reward profile for longer-term investors, especially on pullbacks. Our focus remains on the building blocks of equity investments—earnings, the economy, and interest rates—all of which we believe will remain supportive in the quarters ahead.

The Week Ahead: The focal point of the week ahead will be the Federal Reserve’s (Fed) rate decision on Wednesday, the first one under new Fed Chair Kevin Warsh. The Fed is widely expected to leave rates unchanged at the conclusion of the meeting. Investor scrutiny will be on the post-meeting press conference, at which Chair Warsh will have his first opportunity to lay out his vision for Fed. On the data front, the focus will be on May retail sales on Wednesday. Other reports of interest include industrial production and several updates on the health of the regional manufacturing and housing sectors. It will be a quiet week for earnings, with just two members of the S&P 500 scheduled to release results. Outside of the Federal Open Market Committee meeting, there are no members of the Fed scheduled to speak. Markets will be closed on Friday in observance of the Juneteenth National Independence Day.

— By Michael Schwager, Chief Market Strategist, Managing Director

The Dow Jones Industrial Average is a price-weighted average of 30 blue chip stocks that are generally defined as the leaders in their industry. It has been a widely followed indicator of the stock market since Oct. 1, 1928.

Standard and Poor’s 500 Index is a capitalization-weighted index of 500 stocks. The index is designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

The Nasdaq Composite Index is a broad-based capitalization-weighted index of stocks in all three Nasdaq tiers: Global Select, Global Market and Capital Market. The index was developed with a base level of 100 as of Feb. 5, 1971.

This material contains opinions of the author, but not necessarily those of Guggenheim Partners, LLC, or its subsidiaries. The opinions contained herein are subject to change without notice. Forward-looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable but are not assured as to accuracy. Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information. No part of this material may be reproduced or referred to in any form, without express written permission of Guggenheim Partners, LLC.

Investing involves risk, including the possible loss of principal.

Guggenheim Investments represents the following affiliated investment management businesses of Guggenheim Partners, LLC: Guggenheim Partners Investment Management, LLC, Security Investors, LLC, Guggenheim Funds Distributors, LLC, Guggenheim Funds Investment Advisors, LLC, Guggenheim Corporate Funding, LLC, Guggenheim Wealth Solutions, LLC, Guggenheim Private Investments, LLC, Guggenheim Investments Loan Advisors, LLC, Guggenheim Partners Europe Limited, Guggenheim Partners Japan Limited, and GS GAMMA Advisors, LLC.

©2026 Guggenheim Investments. All rights reserved. #5579591