Wall Street commenced a holiday-shortened week with stocks rising alongside bonds, fueled by optimism regarding potential peace talks between the US and Iran, which overshadowed recent military actions in the Persian Gulf. The S&P 500 reached a record high, buoyed by gains in the chipmaking sector.
Treasury yields decreased as inflation concerns subsided, prompting traders to reduce expectations of imminent Federal Reserve interest rate hikes. The situation in West Asia has introduced volatility in the oil market, with Brent crude prices climbing to approximately $100, rebounding from a drop of over 7 percent on Monday.
The US administration announced progress towards an agreement aimed at concluding the almost three-month conflict, with President Donald Trump indicating ongoing negotiations to extend a ceasefire and reopen the crucial Strait of Hormuz. Secretary of State Marco Rubio warned that finalizing any accord could take several days.
Uncertainty persisted regarding security in the vital energy corridor, following overnight exchanges of strikes and US Central Command’s rebuttal to claims indicating military involvement in escorting vessels.
“Market participants are betting on peace and are consequently investing in strong equity fundamentals,” noted Kyle Rodda of Capital.com.
Ian Lyngen from BMO Capital Markets expressed caution despite the prevailing optimism, recalling past setbacks in negotiations between Washington and Tehran.
According toTom Essaye at The Sevens Report, the absence of an immediate deal would not deter the S&P 500’s momentum; rather, alleviating distractions will enable investors to focus on earnings and growth, enhancing market potential, as the index traded slightly above 7,500.
“While a ceasefire may not act as an instant catalyst, it will serve as a consistent positive influence on stocks and bonds, provided growth remains robust and inflation stays in check,” he added.
Recent data indicated a slight decline in US consumer confidence for May, with perceptions of current economic conditions dipping amid rising inflation due to the ongoing war. The Conference Board’s index decreased to 93.1, following an upward revision of the previous month. Economists had estimated a median value of 92.
“Given the prevailing pricing pressures, a more significant drop in confidence was anticipated,” stated Jeffrey Roach at LPL Financial. “Still, consumers believe that the employment situation will improve by year’s end.”
Corporate Highlights:
- Micron Technology Inc. shares surged following UBS Group AG’s price target increase for the chipmaker to a record $1,625.
- Qualcomm Inc. secured a deal with ByteDance Ltd. to supply chips for artificial intelligence data centers, marking a strategic shift for the company beyond smartphone processors.
- Stocks related to space and satellite technologies rallied as enthusiasm grew within the industry, particularly following SpaceX’s recent public offering filing. Meanwhile, NASA selected Blue Origin, Firefly Aerospace, and others to support lunar exploration missions.
- Eli Lilly & Co. is on a major acquisition spree, announcing transactions exceeding $20 billion in 2026 as it seeks to broaden its portfolio beyond its successful obesity treatment.
- BP Plc unexpectedly dismissed Chairman Albert Manifold just months into his tenure, citing serious concerns over governance standards and oversight, amid ongoing turbulence at the company.
What Bloomberg Strategists Say:
“US equities are caught in a feedback loop of Iran peace hopes and AI earnings that will require a steady supply of positive news to offset crowded bullish positioning,” remarked Michael Ball, Macro Strategist at Markets Live.
Stocks:
- The S&P 500 climbed 0.6% as of 4 p.m. in New York.
- The Nasdaq 100 increased by 1.8%.
- The Dow Jones Industrial Average fell by 0.2%.
- The MSCI World Index rose by 0.3%.
Currencies:
- The Bloomberg Dollar Spot Index rose by 0.1%.
- The euro declined by 0.1% to $1.1632.
- The British pound dropped 0.4% to $1.3450.
- The Japanese yen fell by 0.3% to 159.31 per dollar.
Cryptocurrencies:
- Bitcoin decreased by 1.6% to $75,953.23.
- Ether fell by 1.7% to $2,072.39.
Bonds:
- The yield on 10-year Treasuries fell by seven basis points to 4.49%.
- Germany’s 10-year yield increased by three basis points to 2.98%.
- Britain’s 10-year yield decreased by two basis points to 4.88%.
Commodities:
- West Texas Intermediate crude oil price dropped 3.5% to $93.24 a barrel.
- Spot gold fell by 1.3% to $4,510.04 an ounce.
More stories like this are available on bloomberg.com.
Published on May 27, 2026.
