U.S. Rally Enters Ninth Week with Strong Gains and Crude Oil Extends Recent Decline

Barry Adams
26 May, 2026
New York City

Wall Street indexes in New York advanced in Tuesday's trading after investors returned from a three-day weekend. 

The S&P 500 Index gained 0.6%, and the tech-focused Nasdaq Composite advanced 0.9% following a sharp decrease in global crude oil prices.

The West Texas Intermediate crude oil price decreased 4.9% to $91.83 a barrel, and the international Brent price declined 5.1% to $98.29 a barrel. 

Oil prices remained volatile amid mixed and often conflicting statements from the U.S. president, and investors speculated that the U.S.-Iran peace process may move forward. 

The U.S. military conducted several airstrikes targeting locations in southern Iran and billed the latest string of attacks as "defensive."

Iran's military vowed to carry out retaliatory attacks targeting the U.S. military bases and Israel's military installations.

In international trading, benchmark indexes in China and Japan eased amid worries of a prolonged closure of the Strait of Hormuz, as the oil-dependent economies in Asia rely for most of their energy products on the narrow passageway. 

Benchmark indexes in Shanghai and Mumbai declined between 0.2% and 0.6%, but the rise in the AI-linked stocks lifted market indexes in Tokyo by 0.6% and Seoul by 2.5%. 

The yield on 10-year U.S. Treasuries edged lower to 4.49% amid growing speculation that the elevated energy prices over the last two months are likely to keep the Federal Reserve's policymakers from lowering rates in the immediate future. 

At the start of 2026, the Fed signaled as many as two rate cuts of 25 basis points by the year's end; however, the U.S.-Israel war on Iran has reignited inflationary forces, dimming the prospect of any rate cut in the second half of the year. 

Moreover, small businesses are struggling under the unpredictable tariff regime, and consumers are battling high fuel, transportation, and food prices, adding another layer of worry for policymakers.

 

U.S. Movers 

Ferrari N.V. dropped 3% to $337.47 after the luxury vehicle maker unveiled its first electric vehicle prices around $640,000. 

The Italian company's stock dropped as much as 6.5% in Milan's trading as investors worried that the company may be moving away from the combustion engine-driven models, which are generally preferred by the sports enthusiast.