Market Update
AI and Tech-Driven Market Rally Retained Upward Bias, Overlooking Middle East Uncertainties
Barry Adams
28 May, 2026
New York City
Stocks on Wall Street hovered around the flatline, as investors reviewed the latest events in the Middle East and reacted to corporate news.
The S&P 500 Index decreased 0.1%, and the tech-focused Nasdaq Composite declined 0.3%; and they had closed at new record highs in the previous session.
The last two months' rally has lifted AI- and semiconductor-related stocks to new record highs, and computer memory chipmakers have more than doubled as these companies are deemed to be key beneficiaries of the AI investment cycle.
Investors monitored the developments in the Middle East, as the U.S. confirmed it carried out fresh airstrikes in Iran overnight, targeting military sites.
Iran said it will step up its attacks on U.S. military bases in the Gulf region as Kuwait, Bahrain, and Saudi Arabia braced for more drone and missile attacks.
The West Texas Intermediate crude oil price soared 1.8% to $90.24 per barrel, and the Brent crude oil price increased 1.9% to $96.04 per barrel.
On the economic front, the Personal Consumption Expenditures price index is likely to rise in April, following a 0.7% monthly rise in the previous month.
The annual increase in the alternative measure of inflation is likely to accelerate to 3.7%, following a rise of 3.5% in March, according to the U.S. Bureau of Economic Analysis.
The core PCE Index, which excludes food and energy, is expected to accelerate to 3.3% from 3.2%, confirming the highest reading since late 2023.
Overall, the report reinforced that inflationary pressures remain elevated and significantly above the Federal Reserve's target rate of 2%.
U.S. Movers
Marvell Technology decreased 2.8% to $193.24 after the semiconductor company reported financial results for its fiscal first quarter ending on May 3.
Net revenues increased 28% to $2.4 billion from $1.9 billion, net income dropped to $34.5 million from $177.9 million, and diluted earnings per share eased to 4 cents from 20 cents a year ago.
"We expect revenue growth to continue accelerating each quarter throughout fiscal 2027, driven by continued strength in our data center business,” said Matt Murphy, Marvell’s chairman and CEO.
The company raised its fiscal 2027 and 2028 guidance, "driven by strong demand across a broad set of Marvell solutions," including Ethernet switches and optical interconnect solutions.
The company guided fiscal second quarter revenue of $2.7 billion and diluted net income per share of 37 cents.
Snowflake Inc. soared 37% to $240.25 after the company posted its quarterly results and inked a long-term cloud infrastructure partnership deal with Amazon's AWS unit.
Net revenues in the fiscal first quarter, ending in April, rose 33% to $1.4 billion from $1.1 billion; net loss shrank to $295.6 million from $430.1 million; and diluted loss per share decreased to 86 cents from $1.29 a year ago.
The company estimated product revenue for the fiscal second quarter to range between $1.415 billion and $1.420 billion and for the full year to rise 31% to $5.84 billion, higher than the previous estimate of $5.66 billion.
AI and Tech-Driven Market Rally Retained Upward Bias, Overlooking Middle East Uncertainties
Barry Adams
28 May, 2026
New York City
Stocks on Wall Street hovered around the flatline, as investors reviewed the latest events in the Middle East and reacted to corporate news.
The S&P 500 Index decreased 0.1%, and the tech-focused Nasdaq Composite declined 0.3%; and they had closed at new record highs in the previous session.
The last two months' rally has lifted AI- and semiconductor-related stocks to new record highs, and computer memory chipmakers have more than doubled as these companies are deemed to be key beneficiaries of the AI investment cycle.
Investors monitored the developments in the Middle East, as the U.S. confirmed it carried out fresh airstrikes in Iran overnight, targeting military sites.
Iran said it will step up its attacks on U.S. military bases in the Gulf region as Kuwait, Bahrain, and Saudi Arabia braced for more drone and missile attacks.
The West Texas Intermediate crude oil price soared 1.8% to $90.24 per barrel, and the Brent crude oil price increased 1.9% to $96.04 per barrel.
On the economic front, the Personal Consumption Expenditures price index is likely to rise in April, following a 0.7% monthly rise in the previous month.
The annual increase in the alternative measure of inflation is likely to accelerate to 3.7%, following a rise of 3.5% in March, according to the U.S. Bureau of Economic Analysis.
The core PCE Index, which excludes food and energy, is expected to accelerate to 3.3% from 3.2%, confirming the highest reading since late 2023.
Overall, the report reinforced that inflationary pressures remain elevated and significantly above the Federal Reserve's target rate of 2%.
U.S. Movers
Marvell Technology decreased 2.8% to $193.24 after the semiconductor company reported financial results for its fiscal first quarter ending on May 3.
Net revenues increased 28% to $2.4 billion from $1.9 billion, net income dropped to $34.5 million from $177.9 million, and diluted earnings per share eased to 4 cents from 20 cents a year ago.
"We expect revenue growth to continue accelerating each quarter throughout fiscal 2027, driven by continued strength in our data center business,” said Matt Murphy, Marvell’s chairman and CEO.
The company raised its fiscal 2027 and 2028 guidance, "driven by strong demand across a broad set of Marvell solutions," including Ethernet switches and optical interconnect solutions.
The company guided fiscal second quarter revenue of $2.7 billion and diluted net income per share of 37 cents.
Snowflake Inc. soared 37% to $240.25 after the company posted its quarterly results and inked a long-term cloud infrastructure partnership deal with Amazon's AWS unit.
Net revenues in the fiscal first quarter, ending in April, rose 33% to $1.4 billion from $1.1 billion; net loss shrank to $295.6 million from $430.1 million; and diluted loss per share decreased to 86 cents from $1.29 a year ago.
The company estimated product revenue for the fiscal second quarter to range between $1.415 billion and $1.420 billion and for the full year to rise 31% to $5.84 billion, higher than the previous estimate of $5.66 billion.
Japan's Indexes Struggled to Maintain Momentum Amid Weakness In Tech Stocks and Inflation Worries
Akira Ito
28 May, 2026
Tokyo
Japan's indexes scaled back on Wednesday from record highs set on Tuesday, as investors booked profit in technology stocks.
The Nikkei 225 Stock Average decreased 1.3%, and the broader TOPIX fell 1.4%.
The pullback in AI-related and semiconductor equipment makers dragged down broader market sentiment, and uncertainty linked to the reopening of the Strait of Hormuz weighed.
Investor sentiment deteriorated as investors digested comments from Bank of Japan Governor Kazuo Ueda.
Earlier in the week, Governor Ueda warned about mounting inflationary pressures driven by higher energy prices and tighter supply conditions for energy products.
However, the central bank chief stopped short of indicating if the policy committee is ready to raise rates at the next meeting.
Benchmark indexes in Hong Kong, South Korea, and India dropped between 1% and 3%, and crude oil prices rebounded following the resumption of hostilities in the Middle East.
The Brent crude oil price rose 3.6% to $97.63 a barrel as negotiators between the U.S. and Iran remained deadlocked over several key issues, including disruption of commercial shipment through the Strait of Hormuz.
In overnight trading in New York, broader benchmarks hovered near record highs, as investor sentiment remained positive and AI-linked stocks continued to scale new highs.
Computer memory chipmakers, advanced semiconductor designers, and data networking equipment makers dominated gainers in trading.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 1.3% to 64,133.42, and the broader TOPIX dropped 1.4% to 3,866.10.
SoftBank Group decreased 5.3%, Tokyo Electron decreased 1.5%, Advantest Corp. fell 3.7%, and Lasertec Corp. plunged 5.4%.
Japan's Indexes Struggled to Maintain Momentum Amid Weakness In Tech Stocks and Inflation Worries
Akira Ito
28 May, 2026
Tokyo
Japan's indexes scaled back on Wednesday from record highs set on Tuesday, as investors booked profit in technology stocks.
The Nikkei 225 Stock Average decreased 1.3%, and the broader TOPIX fell 1.4%.
The pullback in AI-related and semiconductor equipment makers dragged down broader market sentiment, and uncertainty linked to the reopening of the Strait of Hormuz weighed.
Investor sentiment deteriorated as investors digested comments from Bank of Japan Governor Kazuo Ueda.
Earlier in the week, Governor Ueda warned about mounting inflationary pressures driven by higher energy prices and tighter supply conditions for energy products.
However, the central bank chief stopped short of indicating if the policy committee is ready to raise rates at the next meeting.
Benchmark indexes in Hong Kong, South Korea, and India dropped between 1% and 3%, and crude oil prices rebounded following the resumption of hostilities in the Middle East.
The Brent crude oil price rose 3.6% to $97.63 a barrel as negotiators between the U.S. and Iran remained deadlocked over several key issues, including disruption of commercial shipment through the Strait of Hormuz.
In overnight trading in New York, broader benchmarks hovered near record highs, as investor sentiment remained positive and AI-linked stocks continued to scale new highs.
Computer memory chipmakers, advanced semiconductor designers, and data networking equipment makers dominated gainers in trading.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 1.3% to 64,133.42, and the broader TOPIX dropped 1.4% to 3,866.10.
SoftBank Group decreased 5.3%, Tokyo Electron decreased 1.5%, Advantest Corp. fell 3.7%, and Lasertec Corp. plunged 5.4%.
Tech Pullback and Hormuz Uncertainties Weighed on China's Indexes
Li Chen
28 May, 2026
Hong Kong
China's indexes pulled back amid a lack of corporate news, and investors reviewed the latest developments in the Middle East.
The Hang Seng Index decreased 2.2%, and the mainland-focused CSI 300 Index declined 0.5%, led by a sharp sell-off in AI-related stocks.
The weakness in semiconductor and AI-related stocks weighed on market sentiment amid worries about elevated valuations and the sustainability of demand from AI hyperscalers.
Benchmark indexes in Japan, South Korea, and India dropped between 1% and 3%, and crude oil prices rebounded following the resumption of hostilities in the Middle East.
The U.S. conducted additional strikes in Iran, despite the ongoing peace talks between the two nations.
The uncertainty surrounding the U.S.-Iran peace negotiations weighed on the market sentiment in Asia, and crude oil prices soared 4%.
The Brent crude oil price rose 3.9% to $97.78 a barrel as negotiators between the U.S. and Iran remained deadlocked over several key issues, including disruption of commercial shipment through the Strait of Hormuz.
China Indexes and Stocks
The Hang Seng Index decreased 2.2% to 24,750.60, and the mainland-focused CSI 300 Index fell 0.5% to 4,881.17.
Hygon Information Technology decreased 2.5%, Cambricon Technologies Corp. increased 0.4%, and NAURA Technology Group advanced 2.9%.
Alibaba Group declined 3%, Tencent Holdings plunged 3%, and JD.com fell 0.5%.
Tech Pullback and Hormuz Uncertainties Weighed on China's Indexes
Li Chen
28 May, 2026
Hong Kong
China's indexes pulled back amid a lack of corporate news, and investors reviewed the latest developments in the Middle East.
The Hang Seng Index decreased 2.2%, and the mainland-focused CSI 300 Index declined 0.5%, led by a sharp sell-off in AI-related stocks.
The weakness in semiconductor and AI-related stocks weighed on market sentiment amid worries about elevated valuations and the sustainability of demand from AI hyperscalers.
Benchmark indexes in Japan, South Korea, and India dropped between 1% and 3%, and crude oil prices rebounded following the resumption of hostilities in the Middle East.
The U.S. conducted additional strikes in Iran, despite the ongoing peace talks between the two nations.
The uncertainty surrounding the U.S.-Iran peace negotiations weighed on the market sentiment in Asia, and crude oil prices soared 4%.
The Brent crude oil price rose 3.9% to $97.78 a barrel as negotiators between the U.S. and Iran remained deadlocked over several key issues, including disruption of commercial shipment through the Strait of Hormuz.
China Indexes and Stocks
The Hang Seng Index decreased 2.2% to 24,750.60, and the mainland-focused CSI 300 Index fell 0.5% to 4,881.17.
Hygon Information Technology decreased 2.5%, Cambricon Technologies Corp. increased 0.4%, and NAURA Technology Group advanced 2.9%.
Alibaba Group declined 3%, Tencent Holdings plunged 3%, and JD.com fell 0.5%.
U.S. Benchmark Indexes Reached New Record Highs, AI Bull Market Lifted Memory Chip Makers
Barry Adams
27 May, 2026
New York City
Wall Street indexes advanced on Wednesday and extended the market rally to the ninth consecutive week amid optimism about AI trading.
The S&P 500 index increased 0.3%, and the tech-heavy Nasdaq Composite advanced 0.7% following the rise in computer memory chip markers.
The two widely followed benchmark indexes extended the market rally to the ninth week, as investors shifted their focus to critical players benefiting from the current AI bull market.
Crude oil extended this week's decline for the second consecutive session and dropped by 4% to $90.47 a barrel amid speculation that the U.S. and Iran are inching closer to an agreement, despite the renewed U.S. attacks.
In metals trading, gold, silver, and copper fell, tracking lower prices in the energy markets.
Gold decreased 1.4% to $4,434.69 an ounce, silver declined 3.7% to $74.17 an ounce, and copper fell 0.7% to $6.40 a pound.
U.S. Movers
Dick's Sporting Goods decreased 3.9% to $224.0 after the company's first-quarter earnings missed market expectations.
The specialty retailer posted adjusted earnings per share of $2.90 on revenue of $5.2 billion, and the company reaffirmed its full-year adjusted earnings outlook.
Bath & Body Works jumped 11% to $19.60 after the company reported its first-quarter results.
The retailer estimated second-quarter earnings per share between 20 cents and 25 cents, surpassing market expectations of 19 cents.
Zscaler plunged 24.5% to $138.55 after the cloud security company's current quarter earnings per share fell short of market expectations.
Revenue in the fiscal third quarter rose to $850 million, and adjusted earnings per share increased to $1.08, surpassing market estimates.
However, the cloud security company guided current quarter revenue between $875 million and $878 million, lower than the market expectations of $879 million.
Box Inc. dropped 2.2% to $25.06 after the company reported its latest quarterly results and issued a softer-than-expected full-year adjusted earnings outlook of $1.56 per share.
U.S. Benchmark Indexes Reached New Record Highs, AI Bull Market Lifted Memory Chip Makers
Barry Adams
27 May, 2026
New York City
Wall Street indexes advanced on Wednesday and extended the market rally to the ninth consecutive week amid optimism about AI trading.
The S&P 500 index increased 0.3%, and the tech-heavy Nasdaq Composite advanced 0.7% following the rise in computer memory chip markers.
The two widely followed benchmark indexes extended the market rally to the ninth week, as investors shifted their focus to critical players benefiting from the current AI bull market.
Crude oil extended this week's decline for the second consecutive session and dropped by 4% to $90.47 a barrel amid speculation that the U.S. and Iran are inching closer to an agreement, despite the renewed U.S. attacks.
In metals trading, gold, silver, and copper fell, tracking lower prices in the energy markets.
Gold decreased 1.4% to $4,434.69 an ounce, silver declined 3.7% to $74.17 an ounce, and copper fell 0.7% to $6.40 a pound.
U.S. Movers
Dick's Sporting Goods decreased 3.9% to $224.0 after the company's first-quarter earnings missed market expectations.
The specialty retailer posted adjusted earnings per share of $2.90 on revenue of $5.2 billion, and the company reaffirmed its full-year adjusted earnings outlook.
Bath & Body Works jumped 11% to $19.60 after the company reported its first-quarter results.
The retailer estimated second-quarter earnings per share between 20 cents and 25 cents, surpassing market expectations of 19 cents.
Zscaler plunged 24.5% to $138.55 after the cloud security company's current quarter earnings per share fell short of market expectations.
Revenue in the fiscal third quarter rose to $850 million, and adjusted earnings per share increased to $1.08, surpassing market estimates.
However, the cloud security company guided current quarter revenue between $875 million and $878 million, lower than the market expectations of $879 million.
Box Inc. dropped 2.2% to $25.06 after the company reported its latest quarterly results and issued a softer-than-expected full-year adjusted earnings outlook of $1.56 per share.
Japan's Indexes Hit New Intraday Highs Amid AI Enthusiasm
Akira Ito
27 May, 2026
Tokyo
Japan's benchmark indexes scaled new intraday highs, tracking gains in overnight trading in New York.
The Nikkei 225 Stock Average jumped as much as 1.3%, and the broader TOPIX advanced 0.4% before settling at lower levels towards the end of the session.
Broader market averages traded around the flatline, and chip stocks extended two-month gains following advances in overnight trading in New York.
The AI investment boom in the U.S. and Europe positions Asian chipmakers as key beneficiaries, including Japan's semiconductor equipment makers.
The U.S. companies alone have announced a commitment of at least $700 billion for AI infrastructure investment. over the next three years.
AI- and semiconductor-linked stocks led the gainers in Wednesday's trading, and investor sentiment was further boosted by cautious optimism that the U.S. and Iran could still reach a peace agreement despite renewed hostilities.
Moreover, the yield on the 10-year Japanese government bonds eased to 2.71%, as markets scaled back near-term interest rate hikes from the Bank of Japan.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased a fraction to 64,999.41, and the broader TOPIX decreased 0.5% to 64,999.41.
Tokyo Electron increased 2.5%, Advantest Corp. jumped 4%, Kioxia Holdings decreased 4%, and SoftBank Group dropped 7%.
Nippon Yusen fell 0.5%, Mitsui OSK Lines decreased 1.8%, and Kawasaki Kisen Kaisha declined 2.7%.