Doha: 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.
According to Qatar News Agency, financial expert Ramzi Qasimia stated that the Standard and Poor's 500 (S and 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, reflecting a noticeable improvement in investors' risk appetite.
Qasimia explained 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 signals from the Federal Reserve indicating that interest rates have reached their peak. This shift strengthened investor sentiment and reduced concerns about rising borrowing costs.
Recent inflation data also supported the markets, with core inflation readings coming in lower than expected, reducing the likelihood of further interest rate hikes. This improvement in investment sentiment pushed traders to increase their exposure to high-risk assets, particularly equities.
Qasimia considered the technology sector the main driver of these increases. He noted that Nvidia continues to benefit from strong demand for artificial intelligence chips and data centers. The global surge in investment in AI technologies boosted Nvidia's expected revenues and profits, positively impacting its share price and market capitalization.
The financial expert highlighted that the gains in the technology sector were supported by strong financial results during the first quarter of 2026. Reports showed that around 80 percent of listed companies announced earnings that exceeded analysts' estimates, marking one of the highest rates since 2021.
Qasimia mentioned that the decline in US Treasury bond yields for ten-year maturities to below 4.6 percent increased the attractiveness of equities compared to fixed-income instruments, redirecting investments toward equity markets in search of higher returns.
The recent decline in oil prices also reduced pressure on companies' profit margins and lowered operating costs, positively impacting future earnings expectations across various sectors.
Qasimia also noted a return of retail investors, supported by improved market sentiment and rising confidence levels. Regulatory developments related to individual investment accounts may encourage more liquidity into the markets, enhancing activity and trading.
He emphasized that massive spending on artificial intelligence is currently the main driver of gains in the US market. Estimates suggest that capital investments in this sector have increased by around USD 130 billion, amid a global race to develop AI infrastructure and expand technological capabilities.
Geopolitical developments also impacted market movements, as signals of de-escalation in international issues reduced uncertainty, positively reflecting in risk appetite and supporting fund flows into equity markets.
The gains achieved by the US markets in May appear driven by a combination of monetary and economic factors and strong corporate results, alongside the ongoing surge in the AI sector. While challenges remain, current data indicates that investors are betting on continued growth and an improved business environment, explaining the US indices reaching new record levels.