Market Summary - Wall Street Nears Record Highs Ahead of Long Weekend
Date: 22 May 2026
Market Overview
US markets opened with a highly optimistic sentiment, with equities on track to achieve their longest streak of weekly gains since 2023. This positive mood is supported by an influx of liquidity and strong macroeconomic indicators. The VIX volatility index has dropped to its lowest level since early February, despite a minor uptick in early morning futures trading. Additionally, there is growing optimism regarding diplomatic progress in the Middle East, contributing to a decline in crude oil prices.
Market Momentum
The momentum in the market is further bolstered by a significant wave of corporate share buybacks and cash takeovers, with the total value of corporate equity purchases exceeding $1 trillion for 2026. The S&P PMI data released recently highlights the resilience of the US economy, particularly in the manufacturing sector, with artificial intelligence capital expenditure beginning to show tangible results in macroeconomic data.
Index Performance
The Nasdaq 100 and S&P 500 indices opened approximately 0.5% higher, later moderating to gains of 0.3% to 0.4%, remaining just below their all-time highs. Notably, the Nasdaq 100 has continued to rise despite a pullback in Nvidia shares, which experienced profit-taking after strong financial results. Major tech stocks like Apple and AMD are trading near peak levels, while Microsoft and Meta Platforms have room for growth as they remain below historical highs.
Corporate Highlights
- IBM: Shares rose by 2.2% following a $2 billion government contract for quantum wafer facilities.
- GlobalFoundries: Stock increased by 7.8% on similar news.
- Workday: Surged 6.8% after beating first-quarter financial expectations.
- Zoom Communications: Climbed 11% due to better-than-expected earnings and an upgraded outlook.
- Take-Two Interactive: Fell 4.4% despite solid quarterly results and a confirmed release date for Grand Theft Auto VI.
- IMAX Corp: Jumped nearly 17% amid reports of a potential sale.
- Alcoa Corp: Increased by 7% after an upgrade from UBS.
- Peloton: Rallied 11% following its addition to the S&P SmallCap 600 Index.
- US-listed Chinese stocks: Experienced declines, with Alibaba down 1.1% and Trip.com down 2.2% due to regulatory concerns.