Wall Street's Record Rally Expected to Continue, Oil Slides, Gold at Crossroads

Wall Street is poised to extend its record-breaking rally into the coming week. Analysts expect the S&P 500 to see further gains, while oil prices continue to slide, and gold faces volatility tied to monetary policy and geopolitical risks.

Sun May 31 2026

Wall Street Poised for Continued Record Rally

Wall Street is set to extend its record-breaking rally into the coming week, following U.S. benchmarks hitting record closing highs and posting weekly and monthly gains on Friday. The S&P 500 registered its ninth consecutive weekly gain, marking its longest winning streak since December 2023. Analysts from JP Morgan and Goldman Sachs are targeting 7500 and 7600 for the S&P 500 this year. AI-driven investment, monetary easing, and broadening profit growth are identified as key drivers for this sustained momentum.

Oil Prices Decline and Gold Faces Uncertainty

Oil prices fell sharply last week, a trend expected to continue into the coming week. U.S. crude dropped below $88 a barrel on Friday, driven by reports that the U.S. and Iran have tentatively agreed to extend their ceasefire by 60 days and may allow unrestricted shipping through the Strait of Hormuz. Analysts predict oil prices will likely remain between $90 and $100 for at least a few more months. Meanwhile, gold is at a crossroads. The precious metal has corrected roughly 16% from its all-time high of $5589 an ounce hit in January. With U.S. inflation coming in at 3.8% in April, the highest since May 2023, experts state that gold remains a key barometer of global uncertainty, with its path tied to monetary policy, central bank activity, and geopolitical risks.

Central Bank Policies and Bond Market Volatility

The debate on inflation and central bank action continues. Futures markets now price in no Federal Reserve rate cuts this year. Conversely, the European Central Bank and the Bank of England are expected to implement rate hikes. Global bond markets are bracing for more turbulence. May was a volatile month for bond markets, with the U.S. 30-year Treasury yield soaring to around 5.2%, its highest since 2007. The UK's 30-year gilt yields also hit their highest since 1998, and analysts anticipate volatility to persist into June.