Markets Climb Despite Softer Growth Signals and Mixed Earnings (May 18 – 22, 2026, Recap)

Overview

Last week’s market review was shaped by softer economic signals, mixed inflation trends, and cautious investor sentiment. UK data pointed to a weakening labor market, easing inflation, and a contraction in private sector activity, while Canada’s headline inflation accelerated on higher energy prices. Australia’s employment report also showed signs of labor market softness. Across broader markets, commodities mostly declined, major U.S. stock indices finished higher, and key earnings from Baidu, NVIDIA, and Walmart offered a mixed picture of corporate performance.

Major Economic Indicators and Events in Review

Tuesday, May 19

09:00 am – UK: Claimant Count Change (GBP)

The number of people claiming unemployment benefits in the UK increased by 26.5 thousand to 1.699 million in April 2026, following a downwardly revised 4.9 thousand rise in the previous month.

GBPUSD fell 0.28% on the day.

17:30 – Canada: CPI m/m (CAD)

Canada’s CPI rose 2.8% year over year in April, accelerating from 2.4% in March, mainly due to higher energy prices, especially gasoline. The end of the consumer carbon levy’s impact on annual comparisons added upward pressure to headline inflation. However, excluding gasoline, inflation eased to 2.0% from 2.2%, while lower travel tour prices and slower rent growth helped limit the overall increase. On a monthly basis, CPI rose 0.4%, or 0.3% seasonally adjusted.

USDCAD ticked up 0.037% on the day.

Wednesday, May 20

09:00 am – UK: CPI y/y (GBP)

UK inflation cooled in April, with both the broader CPIH measure and the main CPI rate slowing from March. The decline was mainly driven by lower pressure from housing and household services, while higher motor fuel prices partly offset the fall. Underlying inflation also eased, with core CPI dropping to 2.5%, helped by a notable slowdown in services inflation.

GBPUSD edged up 0.29% on the day.

Thursday, May 21

04:30 am – Australia: Employment Change (AUD)

Australia’s labor market softened in April, with seasonally adjusted employment falling by 18,600 and the unemployment rate rising to 4.5%. The decline was broad-based, with both full-time and part-time jobs lower, while the employment-to-population ratio also slipped. However, hours worked increased, and the trend figures pointed to steadier conditions, with employment still rising and unemployment unchanged at 4.3%.

AUDUSD ticked up 0.01% on the day

11:30 am – UK: Flash PMI (GBP)

UK private sector activity slipped into contraction in May, with the composite PMI falling below the 50 mark for the first time since April 2025. The weakness was driven by a sharp downturn in services, as businesses reported softer demand, fragile client confidence, and delayed spending decisions. Manufacturing remained more resilient, supported by front-loaded orders and stock building, but overall new work declined. Cost pressures stayed elevated, largely due to higher fuel, transport, energy, and raw material costs, adding to concerns over weaker growth and sticky inflation.

GBPUSD edged down 0.033% on the day.

Commodities

1. Crude Oil
   Crude oil prices decreased by 4.11% over the past week
2. Brent Oil
   Brent was down 4.79% compared to the previous week
3. Gold
   The precious metal Gold (XAUUSD) concluded the week on Friday with a 0.68% weekly decline
4. Silver
   XAGUSD decreased by o.63% from last week

Stock Market

1. S&P 500 gained 0.95%
2. DJIA was up 2.32%
3. NASDAQ 100 increased by 1.32%

Top Gainers

1. Akari Therapeutics, Plc (AKTX) 423.50%
2. PicoCELA Inc. (PCLA) 383.21%
3. Co-Diagnostics, Inc. (CODX) 294.55%

Top Losers

1. Aditxt, Inc. (ADTX) -99.48%
2. Lichen International Limited (LICN) -88.13%
3. CorEnergy Infrastructure Trust, Inc. (CRNG) -87.77%

Company Earnings (May 18 – 22)

Monday, May 18: BIDU (Baidu, Inc.)

Wednesday, May 20: NVDA (NVIDIA Corporation)

Thursday, May 21: WMT (Walmart Inc.)

Baidu ($BIDU) released its Q1 2026 earnings on Monday, May 18. The company posted earnings of $11.90 per share, slightly above expectations of $11.80. However, revenue came in at $31.62 billion, falling short of the projected $31.97 billion by roughly $354 million.

BIDU shares fell 5.57% over the past week.

NVIDIA reported its Q1 results on May 20, 2026, delivering earnings of $1.87 per share, ahead of expectations of $1.76. Revenue jumped 85.2% from a year earlier to $81.62 billion, also beating forecasts of $78.42 billion. The company’s trailing EPS stands at $6.53, with a P/E ratio of 32.98, while earnings are projected to rise 36.34% next year, from $7.98 to $10.88 per share.

NVDA shares dropped 4.43% during the last week.

Walmart delivered a stronger-than-expected Q1, supported by solid sales growth, rising traffic, and continued strength in e-commerce. Management kept its full-year guidance unchanged, while noting that sales momentum is trending toward the upper end of expectations. Growth in advertising, memberships, and marketplace sales helped improve the profit mix, while faster delivery and AI tools supported customer engagement. However, higher fuel costs remained a key headwind and could add inflation pressure later in the year.

WMT shares fell 8.51% last week.

Conclusion

Overall, last week highlighted a cautious market backdrop, with softer labor and business activity data pointing to slower economic momentum, while inflation pressures remained uneven. Commodities weakened across the board, but major U.S. stock indices still managed to finish higher. Corporate earnings were mixed, as strong headline results from key companies were offset by weaker share-price performance, reflecting continued investor sensitivity to growth risks, costs, and forward guidance.