Stock Markets Set New Records on Iran Ceasefire Optimism; Chip Stocks Lead Gains
U.S. stock markets hit fresh record highs on May 27 as investors grew optimistic about a potential U.S.-Iran deal, with technology and chip stocks driving the rally. The S&P 500 and Nasdaq both closed at record levels.
Market Rally
The S&P 500 and Nasdaq Composite rose to fresh intraday all-time highs on Tuesday, led by technology, as traders weighed the prospects of a potential U.S.-Iran deal being reached to end the war. The broad market index gained 0.61% and ended at 7,519.12, while the tech-heavy Nasdaq gained 1.19% to 26,656.18.
Semiconductor Strength
Shares of Micron Technology jumped 19% and topped $1 trillion in market capitalization amid bullishness among analysts on the Street. UBS in particular sees more than 100% upside ahead for the stock, citing benefits from its long-term agreements. Micron shares have soared more than 200% in 2026 and more than 800% over the last 12 months.
Iran Ceasefire Negotiations
President Donald Trump said in a Truth Social post that talks between the U.S. and Iran to end the war are "proceeding nicely." However, he warned that the U.S. could go back on the offensive is discussions falter. "It will only be a Great Deal for all or, no Deal at all," Trump wrote. Oil prices also retreated on ceasefire optimism.
Global Market Performance
Japan's Nikkei 225 rose 1.49% to a fresh record high, while the Topix added 0.57%. South Korea's Kospi jumped 4.84%, while the small-cap Kosdaq declined 0.68%. In Australia, the S&P/ASX 200 was up 0.13%.