Inflation, Jobs, and Earnings Steer a Busy Market Week (May 4 – 8, 2026, Recap)

Overview

Markets faced a busy week of economic data, central bank updates, commodity moves, and corporate earnings. The Reserve Bank of Australia raised interest rates as inflation pressures returned, while labor market reports from New Zealand, Canada, and the United States showed mixed employment conditions. At the same time, oil prices fell sharply, precious metals gained ground, major stock indices moved higher, and earnings from Pfizer, Disney, and McDonald’s gave investors fresh insight into corporate performance.

Major Economic Indicators and Events in Review

Tuesday, May 5

07:30 am – Australia: RBA Rate Statement (AUD)

The Board raised the cash rate by 25 basis points to 4.35% because inflation is rising again, driven by stronger demand and higher fuel prices from the Middle East conflict.

It warned inflation may stay above target for some time, especially if businesses pass on higher costs to consumers. The Board will keep watching the economy and inflation before deciding on future rate moves.

The AUD/USD ticked up 0.22% on the day.

17:00 – USA: ISM Services PMI (USD)

The US services sector expanded for a 22nd straight month in April, with the ISM Services PMI easing slightly to 53.6. Business activity improved, but new orders slowed, and employment remained in contraction, while price pressures stayed high due to rising oil and fuel costs.

The EUR/USD ticked up 0.014% on the day.

Wednesday, May 6

01:45 am – New Zealand: Employment Change q/q (NZD)

New Zealand’s labor market was broadly steady in the March 2026 quarter. The unemployment rate eased slightly to 5.3% from 5.4%, with 163,000 people unemployed, while the employment rate remained unchanged at 66.7%.

The number of employed people rose modestly to 2.889 million, but underutilization stayed high at 12.9%, showing that spare capacity remains in the labor market.

The NZD/USD gained 1.22% on the day.

Friday, May 8

15:30 – Canada: Employment Change (CAD)

Canada’s labor market weakened slightly in April 2026, with employment falling by 18,000 instead of the expected increase. Full-time jobs dropped, while part-time work rose, suggesting softer hiring conditions.

The unemployment picture also worsened for some groups, especially young workers and core-aged men. Ontario added jobs, but several provinces recorded declines, and the overall employment rate slipped to 60.5%.

USD/CAD edged up 0.044% on the day.

15:30 – USA: Non-Farm Employment Change (USD)

US hiring remained modest in April, with nonfarm payrolls rising by 115,000 and the unemployment rate unchanged at 4.3%. Job gains came mainly from health care, transportation and warehousing, and retail, while federal government employment continued to fall.

EUR/USD rose 0.53% on the day.

Commodities

1. Crude Oil
   Crude oil prices declined by 7.63% over the past week
2. Brent Oil
   Brent was down 8.21% compared to the previous week
3. Gold
   The precious metal Gold (XAUUSD) concluded the week on Friday with a 2.21% weekly increase
4. Silver
   XAGUSD increased by 6.61% from last week

Stock Market

1. S&P 500 increased by 2.44%
2. DJIA was up 0.35%
3. NASDAQ 100 increased by 5.65%

Top Gainers

1. CNS Pharmaceuticals, Inc. (CNSP) 215.45%
2. Rackspace Technology, Inc. (RXT) 210.17%
3. SKK Holdings Limited (SKK) 207.43%

Top Losers

1. EZGO Technologies Ltd. (EZGO) -97.44%
2. GD Culture Group Limited. (GDC) -96.31%
3. OneConstruction Group Limited (ONEG) -84.07%

Company Earnings (May 4 – 8)

Tuesday, May 5: PFE (Pfizer Inc.)

Wednesday, May 6: DIS (The Walt Disney Company)

Thursday, May 7: MCD (McDonald’s Corporation)

Pfizer delivered a stronger-than-expected Q1, with revenue of $14.5 billion and adjusted EPS of $0.75, while reaffirming its full-year 2026 guidance. The company benefited from legal wins, strong growth in launched and acquired products, and encouraging progress in oncology and obesity treatments.

However, risks remain from upcoming patent expirations, uncertain COVID product demand, and elevated leverage, which may limit major share buybacks.

PFE shares declined by 2.47% over the past week.

Walt Disney reported stronger-than-expected Q2 2026 results. Earnings per share came in at $1.57, beating forecasts of $1.49, while revenue rose 6.5% from a year earlier to $25.17 billion.

Analysts expect Disney’s earnings to keep growing next year, from $6.82 to $7.32 per share, suggesting a steady outlook for the company.

DIS shares gained 4.79% last week.

McDonald’s reported stronger-than-expected Q1 2026 results. Earnings per share came in at $2.83, beating forecasts of $2.74, while revenue rose 9.4% from a year earlier to $6.52 billion.

Analysts expect McDonald’s earnings to keep growing next year, from $13.04 to $14.34 per share, pointing to a positive outlook for the company.

MCD shares declined by 3.80% during the last week.

Conclusion

Overall, the week showed a market balancing inflation concerns, mixed labor data, and shifting investor sentiment. While oil prices fell sharply, gold and silver gained support, and major stock indices ended higher. Looking ahead, investors will continue to watch inflation trends, central bank signals, employment data, and corporate earnings for clearer direction.