Markets brace for a quiet start amid Memorial Day closures and crypto volatility

Financial markets are set for a mixed start to the week. U.S. equity and bond markets will remain closed on Monday for Memorial Day, while crypto trading continues as usual. Investors are also watching for signs of a potential U.S.-Iran agreement, which has already boosted market sentiment in recent days. The holiday closure on Monday means traditional markets will see no activity, but cryptocurrencies will keep trading. Bitcoin hovered around $76,700, showing a 2% gain over the past 24 hours but a 2% drop over the week. Ethereum, meanwhile, traded near $2,100.

Thinner liquidity during holiday periods often leads to sharper price swings. This comes after U.S. stocks gained roughly $400 billion in value last week amid speculation about a possible peace deal between the U.S. and Iran. Later in the week, key economic data will be released. Thursday brings April’s personal income and outlays report, including the closely watched PCE inflation figure. The second estimate of Q1 2026 GDP and corporate profits will also arrive, alongside April’s new home sales data.

Traders face a week of limited early activity due to the holiday, followed by important economic updates. The focus remains on inflation figures, GDP revisions, and any developments in U.S.-Iran discussions. These factors could influence market movements in the days ahead.