ICM Monthly Outlook - May 2026

Markets continue to demonstrate remarkable resilience in 2026.

Despite heightened geopolitical tensions, persistent inflation concerns and renewed volatility earlier in the year, equity markets have rebounded strongly, with both the S&P 500 and NASDAQ reaching fresh all-time highs. Investors appear increasingly willing to look through macro uncertainty, supported by resilient corporate earnings, accelerating AI investment and expectations that policymakers will continue to favour stability over disruption.

In this month’s market review, Conor Spencer examines the drivers behind the latest equity rally, why markets continue to tolerate geopolitical risk, the growing influence of AI infrastructure spending, inflation and Federal Reserve expectations, and why the outlook for global equities may remain constructive despite elevated valuations.

For a comprehensive analysis of the current market dynamics and future outlook, read the full market review here.