Doha [Qatar], June 1: The US markets witnessed a strong upward surge during the month of May, pushing the main indices to record new historical levels, supported by a range of economic and financial factors that boosted investor confidence and restored momentum to the stock markets.
In exclusive statements, financial expert Ramzi Qasimia, told Qatar News Agency (QNA), that the Standard and Poor's 500 (S&P 500) index recorded gains of approximately 5.7 percent in May 2026, while the Nasdaq index, which includes the largest US technology companies, jumped by around 8.5 percent.
The Dow Jones Industrial Average also posted an increase of nearly 3 percent, in a performance that reflects a noticeable improvement in investors' risk appetite, he added.
Qasimia said that the most influential factor behind these gains lay in the increasing expectations of the end of the monetary tightening cycle in the US, with the emergence of growing signals from the Federal Reserve (the US central bank) indicating that interest rates have reached their peak levels.
This shift contributed to strengthening investor sentiment and reducing concerns related to the continued rise in borrowing costs, he continued.
Recent inflation data also played a pivotal role in supporting the markets, after core inflation readings came in lower than expected, which reduced the likelihood of implementing further interest rate hikes in the coming period.
This led to a clear improvement in investment sentiment and pushed traders to increase their exposure to high-risk assets, foremost among them equities.
Qasimia considered the technology sector the main driver of these increases.
He pointed out that Nvidia continues to lead the scene, benefiting from strong and unprecedented demand for artificial intelligence chips and data centers, adding that the global surge in investment in technologies related to AI also contributed to boosting the company's expected revenues and profits, which was positively reflected in its share price and market capitalization.
The financial expert, Ramzi Qasimia, said that he thought the gains in the technology sector were not based on expectations alone, but were supported by strong financial results during the first quarter of 2026, indicating that reports showed that around 80 percent of listed companies announced earnings results that exceeded analysts' estimates, which is one of the highest rates exceeding expectations since the second quarter of 2021.
He indicated that these results did not exceed estimates by slight margins, but came in significantly higher, which reinforced the conviction that the current increases are based on solid financial and economic foundations.
Qasimia told QNA that another factor that supported the rise in US equities was the decline in US Treasury bond yields for ten-year maturities to below 4.6 percent and their approaching the 4.5 percent level, noting that the decline in yields usually leads to an increase in the attractiveness of equities compared to fixed-income instruments, which pushed investors to redirect part of their investments toward equity markets in search of higher returns.
The decline in oil prices over the recent period also contributed to reducing pressure on companies' profit margins and lowering operating and production costs, which was positively reflected in the future earnings expectations of many economic sectors.
On the other hand, Qasimia pointed out a notable return of retail investors, supported by improved market sentiment and rising levels of confidence. Observers believe that regulatory facilitations and developments related to individual investment accounts may encourage the inflow of more liquidity into the markets over the coming months, which would enhance levels of activity and trading, he added.
He said that massive spending on artificial intelligence currently represents the main driver of gains in the US market, and estimates indicate that capital investments related to this sector have increased by around $130 billion over the recent period, amid a global race among major companies to develop AI infrastructure and expand their technological capabilities.
The financial expert also highlighted the impact of geopolitical development on market movements, as signals of de-escalation in several international issues contributed to reducing the uncertainty that had been dominating investors, which was positively reflected in risk appetite and supported the continued flow of funds into equity markets.
The gains achieved by the US markets during the current month appear to be driven by a combination of monetary and economic factors and strong corporate results, alongside the ongoing surge in the AI sector. While challenges remain, the current data indicates that investors are betting on continued growth and an improvement in the business environment, which explains the US indices reaching new record levels.
Source: Qatar Tribune
