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Markets Hit Records as AI Rally Runs Into Fragile US–Iran Truce

A fragile ceasefire and recent U.S. strikes have lifted oil volatility and pose a short‑term test for gains driven by AI earnings and chip stocks.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., May 21, 2026. REUTERS/Jeenah Moon
A dealer walks past near the screens showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Wednesday, May 27, 2026. (AP Photo/Lee Jin-man)
A person looks at an electronic stock board showing Japan's Nikkei index at a securities firm Monday, May 25, 2026, in Tokyo. (AP Photo/Eugene Hoshiko)
Visitors walk inside Japan Exchange Group's Tokyo Stock Exchange in Tokyo, Japan, April 6, 2026. REUTERS/Issei Kato

Overview

  • U.S. stocks pushed the S&P 500 and Nasdaq to fresh highs on strong AI‑related earnings and a big rise in memory chip shares led by Micron.
  • Fresh U.S. strikes in southern Iran last week weakened hopes of an immediate peace deal and sent Brent briefly above $100 a barrel, triggering headline‑driven market swings.
  • Regional markets split with heavy tech buying lifting Korea and Taiwan while Pakistan’s benchmark surged and Indian indices showed intraday volatility before ending lower.
  • In India, domestic institutional buyers helped support prices as foreign portfolio investors shifted to net selling, amplifying short‑term swings around monthly derivative expiry.
  • Oil trading around $95–$100 is an active risk for inflation, currencies and policy decisions, and markets will look to U.S. PCE inflation data and any diplomatic moves for the next direction.