Market Summary - May 26, 2026
Overview
On May 26, 2026, Wall Street experienced a rise despite ongoing tensions between the U.S. and Iran. Investors are closely monitoring the situation as negotiations continue, with President Donald Trump indicating that talks are progressing but warning of potential military escalation if they fail.
Market Performance
Wall Street futures showed a slight decline as investors assessed the uncertainty surrounding a potential U.S.-Iran agreement. The Nasdaq 100 and S&P 500 opened higher, gaining 1% and 0.5% respectively, despite futures pulling back slightly. The oil market remains volatile, with crude prices increasing nearly $3, pushing Brent above $96 per barrel.
U.S. Treasury yields fell, with the 10-year yield dropping below 4.5%. Market expectations for near-term Federal Reserve rate cuts have diminished, with an 8.5% probability of a July rate hike now priced in, up from 0.9% a month prior.
Sector Highlights
The semiconductor sector is experiencing significant gains, particularly with Micron Technology, which saw a 10% rise. Qualcomm and Advanced Micro Devices (AMD) also reported gains of over 3%. In contrast, the oil sector underperformed, with BP shares declining nearly 4% following the unexpected dismissal of its Chairman.
Micron Technology's Surge
Micron Technology's shares surged in premarket trading after UBS raised its price target from $535 to $1,625. This upgrade is attributed to a structural shift in the memory market, driven by long-term supply agreements with major customers. UBS noted that a significant portion of DDR volumes, especially server-grade DDR5, is now secured under multi-year agreements, which could lead to reduced earnings volatility and improved demand visibility for Micron.
UBS forecasts earnings per share (EPS) for Micron to be $155 in 2027, $167 in 2028, and $117 in 2029, suggesting that even in a moderate memory downcycle, earnings will remain robust. The new price target implies over 100% upside potential, supported by a valuation that reflects Micron's strategic role in the AI ecosystem.
Mizuho also reiterated its Outperform rating for Micron, emphasizing that DRAM and NAND memory technologies are foundational for AI infrastructure, with demand expected to exceed supply through at least 2026-2027.