S&P 500, Nasdaq Climb 0.61% and 1.05% Near Records as AI Rally Offsets Iran Risk
Updated
Updated · Reuters · May 26
S&P 500, Nasdaq Climb 0.61% and 1.05% Near Records as AI Rally Offsets Iran Risk
11 articles · Updated · Reuters · May 26
Micron surged nearly 17% and briefly topped a $1 trillion market value after UBS tripled its price target, helping lift the S&P 500 to 7,518.73 and the Nasdaq to 26,619.04.
The Philadelphia Semiconductor index jumped 4.6% to a record high, while Qualcomm rose 5.3% on a reported ByteDance chip deal and Intel and Marvell also advanced.
Middle East tensions still hung over markets: Brent crude rose as much as 3% but stayed below $100, with uncertainty over peace talks and Strait of Hormuz shipping flows limiting broader risk appetite.
The Russell 2000 also touched an intraday record, and space stocks including Intuitive Machines, Planet Labs and Rocket Lab rallied ahead of investor focus on major private AI and space IPOs such as SpaceX.
LSEG data showed first-quarter earnings growth is now expected at 29% from 16.1% a month ago, reinforcing the AI-led rally even as May consumer confidence softened on war-linked price worries.
With Mideast tensions rising, is Wall Street's AI optimism a bubble ignoring imminent global supply chain risks?
Can the new Fed chair contain inflation while a multi-trillion dollar AI build-out fuels both growth and price pressures?
What critical resource, beyond chips and capital, could unexpectedly halt the multi-trillion dollar global AI infrastructure race?
S&P 500 at All-Time Highs: Tech Concentration, Iran Tensions, and What’s Next for Investors (May 2026)
Overview
In May 2026, the S&P 500 reached record highs, showing remarkable resilience despite ongoing inflation concerns. This achievement was driven by an impressive eight-week winning streak, making it one of the strongest periods for equities in recent years and marking a clear shift from the usual 'sell in May and go away' trend. The rally was fueled by strong corporate earnings growth, favorable interest rate expectations, and a reduction in geopolitical risk premium. As a result, both retail and institutional investors chose to maintain their positions in equities, supporting the market’s sustained upward momentum.