Market Summary: Stock Markets Dance Towards New Records
By Elior Manier - 22 May 2026
Overview
US stock markets are experiencing a significant rebound, with traders optimistic about a potential peace deal in the Middle East. This optimism is reflected in the performance of major indices, including the Dow Jones, Nasdaq, and S&P 500, as they approach new all-time highs ahead of the Memorial Day long weekend.
Market Sentiment
The rally is largely attributed to a report from Sky News indicating that an agreement has been reached regarding nuclear issues, which is seen as a step towards a formal end-of-war deal. This development has alleviated previous concerns about renewed conflict, allowing risk assets to flourish.
President Trump has publicly endorsed the rally, suggesting that the administration views the current market conditions as a pathway to new record highs. The decline in oil prices has also contributed to easing inflation fears, prompting institutional investors to re-enter the market.
Performance of Major Indices
The Nasdaq is leading the charge, driven by gains in semiconductor stocks and the so-called "Magnificent 7" tech companies. The S&P 500 is also showing strength, while the Dow Jones Industrial Average is breaking through resistance levels, indicating a bullish trend.
Technical Analysis
Dow Jones Industrial Average
- Resistance Levels: 50,800 to 50,900 (daily highs at 50,858), next target 51,000 - 51,100.
- Support Levels: 50,400 to 50,500 (now pivot), pivotal support at 49,000 to 49,100.
Nasdaq Composite
- Resistance Levels: 29,500 - 29,600, current ATH at 29,698, next target 30,000.
- Support Levels: 29,100 - 29,250 (momentum pivot), major support at 28,000.
S&P 500
- Resistance Levels: 7,500 - 7,525 (daily ATH resistance), current ATH at 7,524.
- Support Levels: 7,430 - 7,450 (intraday pivot), key support at 7,400.