May 2026 market update

Global markets continued to move higher in May, with Canadian and U.S. stock markets posting solid gains despite growing economic challenges. While hopes for a lasting peace agreement between the U.S. and Iran helped ease oil prices somewhat, energy costs remain elevated and continue to fuel inflation around the world. Rising prices are putting pressure on both consumers and businesses, leading to more cautious spending and weaker economic growth across many regions.

In Canada, the economy entered a technical recession after contracting for a second consecutive quarter, as higher energy costs and inflation weighed on consumer spending and business activity. Similar trends emerged in the United States and Europe, where inflation accelerated, consumer confidence weakened, and economic growth slowed. Although equity markets remain resilient, concerns about persistent inflation, elevated oil prices, and softening economic activity continue to create uncertainty for the months ahead. Investors will be watching central banks closely as they balance the competing challenges of slowing growth and rising inflation.

To read the full update, including data tables and detailed commentary, visit the full article on Canada Life: Monthly Market Update – May 2026.