S&P 500 – 7,519.12 (+0.61%)

Dow Jones – 50,461.68 (-0.23%)

NASDAQ – 26,656.18 (+1.19%)

• Geopolitics: US-Iran Tensions Flare in Strait of Hormuz: Stocks held firm even as tensions escalated in the Strait of Hormuz, with the U.S. reporting self-defense strikes in southern Iran and Iran’s Islamic Revolutionary Guard Corps responding with attacks on a U.S. aircraft and drones. Despite the escalation, markets remained resilient.
• Market Records: S&P 500 and Nasdaq Close at New Highs: The S&P 500 posted a record closing high on Tuesday, while the Nasdaq Composite reached fresh all-time intraday and closing records, underscoring continued strength in tech-led momentum. The Dow Jones also marked its 130th anniversary during the session.
• Rates & Bonds: Yields Extend Pullback as Inflation Eases: The 10-year U.S. Treasury yield slipped to 4.49%, continuing its recent decline and moving back toward the upper end of the expected 4.0%–4.5% range for the year. Yields have eased roughly 20 basis points from recent highs as inflation concerns moderate and rate expectations stabilize.
• Global Markets: Overseas Equities Weaker on Risk-Off Tone: International markets traded softer, with most Asian indices closing lower overnight and European equities also finishing in negative territory, reflecting a more cautious global risk backdrop.
• Energy Markets: Oil Volatility Persists on Geopolitical Risk: Energy markets remained volatile, with Brent crude futures rising 4% while WTI crude futures fell about 4% following U.S. strikes and renewed concerns over the durability of the Iran ceasefire. The U.S. dollar edged slightly lower but remained rangebound.
• Housing & Inflation: Home Prices Continue Moderate Growth: The S&P Cotality Case-Shiller 20-City Index showed home prices rising 0.83% year over year in March, slowing from February’s 0.9% gain, signaling continued but moderating housing inflation.
• Earnings: Strong Season Winds Down Above Expectations: Earnings season is nearing completion with about 95% of S&P 500 companies reporting. Roughly 84% beat EPS estimates, delivering an average upside surprise of 17%, reinforcing overall corporate earnings strength.
• Tech & AI: Micron Leads Semiconductor Surge to Record Levels: Micron Technology surged alongside broader chip strength, with Qualcomm, AMD, and Nvidia also higher. The PHLX Semiconductor Index opened at a record high, reflecting continued momentum in AI-driven demand.
• Corporate Movers: Mixed Reaction to Earnings and News Flow: Dell and HP rallied on optimism around AI-driven PC demand following strong Lenovo results, while AutoZone fell despite beating estimates due to softer revenue trends. BP declined after governance changes, while Eli Lilly gained on positive clinical trial results.
• Space & Innovation: Space Stocks Rally on IPO Buzz: Space-related names moved higher on optimism surrounding a potential SpaceX IPO, with Intuitive Machines and AST SpaceMobile both posting strong gains.
• Luxury & Industrials: Ferrari Slips on EV Transition Plans: Ferrari shares declined after the company announced plans to launch its first fully electric vehicle, weighing on sentiment in the luxury auto segment.
• Commodities & Crypto: Gold Steady, Bitcoin Slightly Lower: Gold prices were broadly unchanged, while bitcoin slipped to around $76,725 amid a cautious but steady risk backdrop.
• Market Standout: Madison Square Garden Hits Record High on Knicks Run: Madison Square Garden Sports reached a record high as the Knicks’ run to the NBA Finals fueled investor enthusiasm, extending a strong year-to-date rally.

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“I’ve failed over and over and over again in my life. And that is why I succeed.”  — Michael Jordan

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Notable Stocks

• Micron (MU)
• AutoZone (AZO)
• Nvidia (NVDA)
• Dell (DELL)
• BP (BP)

Weekly Notables

AutoZone Drops Sharply Despite Earnings Beat, Posts Worst Day in Four Years

AutoZone (AZO) fell 9% on Tuesday, marking its worst single-day decline in more than four years, even after reporting quarterly results that topped Wall Street expectations. The company posted earnings per share of $38.07, beating estimates of $36.28, while revenue of $4.84 billion came in roughly in line with forecasts.

Rothschild Lifts Nvidia Price Target, Sees “Near-Immaculate” Quarter Driving More Upside

Rothschild & Co Redburn raised its price target on Nvidia (NVDA), citing what it described as a “near-immaculate” earnings quarter that could set the stage for further gains in the stock. The bank increased its target to $300 from $280, implying nearly 40% upside from Friday’s close. Analyst Timm Schulze-Melander said Nvidia’s latest fiscal first-quarter results were “impressive” and highlighted accelerating data center momentum.

Earnings Spotlight: Costco (COST)

Costco (NASDAQ: COST) is scheduled to release its Q3 fiscal 2026 earnings on Thursday, May 28, 2026, after the market closes. Wall Street analysts project the company to report earnings per share (EPS) of $4.98 on roughly $69.61 billion in revenue.

What's Ahead

May 27: April new home sales and expected earnings from Dick's Sporting Goods (DKS), Marvell Technology (MRVL), Salesforce (CRM), Synopsys (SNPS), and Snowflake (SNOW).
May 28: First quarter GDP second estimate, April Personal Consumption Expenditures (PCE) prices, and expected earnings from Dell (DELL), Dollar Tree (DLTR), MongoDB (MDB), Best Buy (BBY), Costco (COST), AutoDesk (ADSK), and Gap (GAP).
May 29: No major data or earnings expected.