Opening Bell - Morning Commentary - 11 May 2026

The S&P 500 and the NASDAQ recorded their sixth consecutive weekly gains as stronger-than-expected quarterly earnings growth lifted both indexes to fresh record highs. The NASDAQ finished up 4.5% for the week, and the S&P 500 added 2.4%. The Dow lagged, posting a fractional gain.

Major US indexes reached all-time highs at the end of last week, driven by a robust April employment report that showed 115,000 new jobs were added, far exceeding the forecast of 55,000. This economic resilience, combined with sustained momentum in artificial intelligence sectors, led the markets higher.

Profits continued to improve as earnings season entered its final stretch, with analysts now expecting the strongest growth rate since the fourth quarter of 2021. First-quarter net income is expected to rise an average of 27.7% for companies in the S&P 500, based on reports already released as of Friday and forecasts for the relatively small number of firms that hadn’t yet reported. At the end of March, the projected earnings growth rate was just 13.1%.

The U.S. economy recorded back-to-back monthly jobs gains after alternating between gains and losses each of the previous 10 months. On Friday, the government reported a higher-than-expected gain of 115,000 jobs in April on the heels of March’s upwardly revised figure of 185,000. April’s unemployment rate stayed unchanged at 4.3%.

The energy sector has become a dominant market leader in 2026, with the S&P Energy Select Sector index rising nearly 25% year-to-date. Brent crude prices surged back above $105 per barrel due to supply disruptions and regional instability, providing a significant boost to oil and gas providers.

Recent data showing US inflation accelerating to 3.3% has led major financial institutions to project that interest rate cuts may be delayed until 2027. With core inflation remaining stubborn and energy costs rising, some analysts are now assigning a higher probability to potential rate hikes later this year.

A monthly gauge of U.S. consumer sentiment extended its recent decline amid a spike in energy prices. The University of Michigan’s survey results showed that sentiment fell to a preliminary May reading of 48.2, down from April’s final reading of 49.8. Both numbers are well below a recent peak of 56.6 reached in February.

A Consumer Price Index report scheduled for release on Tuesday will show whether a recent inflation spike extended into April amid higher energy prices. The most recent CPI report showed an annual inflation rate of 3.3% in March, up from the previous month’s 2.4% reading. In March, the energy price component of CPI surged 12.5% on a year- over-year basis.

South Korea’s Kospi climbed to another record on Monday, leading gains across Asia-Pacific markets as investors monitored rising oil prices and growing tensions between the United States and Iran. The Kospi opened 3.67% higher at a record level.

Indian equity benchmarks ended the week on a cautious note, with the Nifty 50 slipping around 0.6% to 24,176, while the Sensex shed about 0.7% to near 77,700, as profit booking in heavyweights and sustained foreign outflows weighed on sentiment.

Addressing a public gathering in Hyderabad, PM Modi urged Indians to revive pandemic-era work-from-home habits including virtual meetings and remote work — to reduce unnecessary commuting and fuel use. He appealed to citizens, especially families planning weddings and celebrations, to postpone gold purchases for at least one year in the national interest, and also asked Indians to defer non-essential foreign travel, including overseas vacations and destination weddings.

He further called for reduced consumption of edible oil, linking it to both personal health and economic savings, while encouraging the use of public transport, EVs, and Made-in-India products.

Rising crude oil prices and global instability are putting severe pressure on India’s foreign exchange reserves, and reducing discretionary spending on gold imports and foreign travel could help the country conserve them.

Equity futures for the US markets edged lower on Monday morning following a record-setting session on Friday. Market sentiment has been tempered by the rejection of a peace proposal intended to end the ongoing conflict with Iran, fueling concerns that the Strait of Hormuz will remain closed.

The Indian market is in a consolidation phase, with the Nifty likely to oscillate in a broad band between 23,800 and 24,400, while the trajectory will hinge on foreign flows, crude oil trends, and any fresh policy cues from the government or RBI.