Key Takeaways
- New charitable giving rules for 2026 create tax planning opportunities for both standard deduction and itemizing taxpayers.
- Markets continued higher as oil prices and Treasury yields moved lower.
- Investors are increasingly betting on a resolution to the Iran conflict.
- Technology stocks remained the primary driver of market gains.
- Employment data takes center stage this week.
Market Overview: Lower Oil and Interest Rates Support Stocks
Markets continued their upward climb last week as declining oil prices and lower interest rates overshadowed the fact that only four of the eleven S&P 500 sectors finished the week higher.
Investors continue to look beyond today’s headlines and toward a potential resolution of the Iran conflict. As expectations for a settlement have increased, both oil prices and bond yields have retreated.
The market’s message appears clear: investors are expecting the economic impact of the conflict to eventually moderate.
Let’s hope an actual resolution becomes fact—sooner rather than later.
Market Index Performance: Last Week & Year-To-Date
| Index | Last Week | YTD |
|---|---|---|
| Dow Jones Industrial Average | +0.75% | +6.03% |
| S&P 500 | +1.46% | +10.77% |
| NASDAQ Composite | +2.21% | +18.85% |
| Russell 2000 | +1.62% | +17.48% |
| Foreign Stocks | +0.90% | +9.25% |
| Emerging Markets | +4.20% | +25.48% |
| Bloomberg US Aggregate Bond | +0.73% | +0.27% |
| Bloomberg Municipal Bond | +0.80% | +1.11% |
WTI Crude Oil fell to $87.76 per barrel during the shortened trading week.
The yield on the 10-Year US Treasury declined to 4.437%, although it remains noticeably above its approximately 4.16% starting point for the year.
Market Leadership: Technology Continues to Drive Returns
One interesting development last week was the narrow nature of market participation.
Only four of eleven S&P 500 sectors finished higher:
- Materials
- Industrials
- Consumer Discretionary
- Information Technology
Technology once again led the way, gaining 4.28% for the week.
Communication Services finished essentially unchanged, while the remaining sectors—including Utilities, Consumer Staples, Real Estate, Health Care, Financials, and Energy—lost ground.
This continues a trend we’ve seen throughout much of 2026: technology and artificial intelligence-related spending remain major drivers of both corporate profits and market performance.
Employment Data Takes Center Stage
With earnings season largely behind us, investor attention shifts toward the labor market this week.
Key reports include:
- Tuesday: Job Openings and Labor Turnover Survey (JOLTS Report)
- Wednesday: ADP Employment Report
- Thursday: Challenger Job Cuts Report
- Friday: Nonfarm Payrolls and Unemployment Report
Employment remains an important pillar supporting economic growth. As long as Americans remain employed and spending, the economy maintains an important source of strength.
New 2026 Charitable Deduction Rules: What Standard and Itemizing Filers Need to Know
Many taxpayers support charities throughout the year, and beginning in 2026, Congress has created different tax rules depending on whether you take the standard deduction or itemize deductions.
If You Take the Standard Deduction:
For the first time in several years, taxpayers who do not itemize may still receive a federal tax benefit for charitable giving.
Beginning in 2026:
- Single filers may deduct up to $1,000 of qualifying cash charitable contributions.
- Married couples filing jointly may deduct up to $2,000 of qualifying cash charitable contributions.
This is welcome news for many taxpayers who have historically taken the standard deduction and received no federal tax benefit for their charitable gifts.
Keep in mind, the deduction generally only applies to cash contributions made directly to qualified charities. Contributions to donor-advised funds and certain other charitable vehicles generally do not qualify for this special deduction.
If You Itemize Your Deductions:
For taxpayers who itemize, charitable contributions remain deductible; however, a new limitation begins in 2026.
Under the new rules, charitable contributions are deductible only to the extent that they exceed 0.5% of Adjusted Gross Income (AGI).
For example:
- AGI of $100,000 = first $500 of charitable contributions is not deductible.
- AGI of $200,000 = first $1,000 of charitable contributions is not deductible.
- AGI of $500,000 = first $2,500 of charitable contributions is not deductible.
Beyond that threshold, the traditional charitable deduction rules generally apply.
A Valuable Planning Strategy
For individuals age 70½ and older, a Qualified Charitable Distribution (QCD) from an IRA may remain one of the most tax-efficient charitable planning tools available.
A QCD allows funds to move directly from an IRA to a qualified charity, potentially satisfying Required Minimum Distributions while keeping the distribution out of taxable income.
As always, charitable giving decisions should be coordinated with your tax advisor and your overall financial plan. With proper planning, charitable gifts can benefit both the causes you care about and your family’s long-term tax strategy.
Final Thoughts
Markets continue to benefit from easing oil prices, lower interest rates, and optimism surrounding a possible geopolitical resolution.
At the same time, leadership remains relatively narrow, inflation concerns have not fully disappeared, and economic data will continue to play an important role in determining where markets go next.
As I often remind clients, successful retirement planning is rarely about predicting the next headline. It is about maintaining a disciplined strategy that can weather changing market environments while keeping your long-term goals in focus.
That remains true today.
Please feel free to share the Weekly Retirement Report with friends, family, and colleagues.
Thank you for reading!
Paul Levin, CFP®, ChFC® RICP®, TPCP®
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
All market data sourced from The Wall Street Journal, May 29, 2026.
