U.S. stock markets are closed Monday for Memorial Day. Trading resumes Tuesday with a heavy earnings calendar ahead.

Wall Street wrapped up last week on a positive note. The S&P 500 rose 0.95% to 7,473 points, the Dow Jones gained 1.80% to 50,580, and the Nasdaq added 0.97% to 26,344. The Russell 2000 small-cap index jumped 3.39% — continuing a rotation trend that has gathered steam in recent weeks. The VIX fear gauge fell 8.14% to 17, signaling growing investor confidence.

Semis and Tech Lead, Oil Falls

Semiconductors were the standout sector: the SMH ETF surged 5.52% for the week, with tech (XLK) following at +3.46%. Healthcare (XLV) rose 2.86% and utilities (XLU) gained 3.21%.

Oil was the biggest loser. The USO ETF dropped 5.61% as U.S.-Iran ceasefire negotiations advanced. Any reopening of the Strait of Hormuz could significantly lower global energy prices. Gold (GLD) also fell 1.1% on the same geopolitical optimism.

Earnings Season: Fastest Growth in Nearly 5 Years

This earnings season has been remarkable. S&P 500 profit growth is the fastest in nearly five years, according to MarketWatch. But analysts warn of a risk-filled summer ahead — with inflation, potential rate moves, and geopolitics looming.

The S&P 500 trades at a trailing P/E of 28, reflecting elevated valuations that earnings will need to justify.

This Week's Earnings Calendar

Tuesday — Zscaler (ZS) kicks off the week.

Wednesday — A triple-header: Salesforce (CRM), Snowflake (SNOW), PDD Holdings, and Synopsys (SNPS). All eyes on CRM for enterprise software demand signals.

Thursday — The busiest day: Costco (COST), Dell Technologies (DELL), MongoDB (MDB), SentinelOne (S), Elastic (ESTC), Okta (OKTA), and Chinese EV makers XPeng (XPEV) and Li Auto (LI). Consumer spending trends will be in focus through Costco's numbers.

IPO Spotlight: Mastercard at 20

MarketWatch marked the 20th anniversary of Mastercard's IPO this week — a reminder of long-term wealth creation. MA shares have surged over 11,000% since their 2006 debut. The stock now trades around $498 with a market cap of $440 billion and a P/E of 28.8. It's a benchmark example of how quality IPOs can compound over decades.

The Week Ahead

Beyond earnings, investors will track U.S.-Iran talks, oil price trajectories, and macro data releases. The semiconductor rally continues to draw attention, alongside warnings about the cyclical nature of memory stocks.

Bottom Line

A bull market grinding higher with geopolitical crosswinds. This week's earnings will test whether the momentum can hold through the summer.