Opening Comment — Wednesday, May 27, 2026
DJIA: 50,461.68, down 118.02
S&P 500: 7,519.12, up 45.65
NASDAQ: 26,656.18, up 312.21
Stocks higher before economic data
Stock futures are higher Wednesday morning as oil prices continue easing and as investors are awaiting today’s economic measures from the Richmond and Dallas Federal Reserve (Fed) banks. Investors are also looking ahead to tomorrow’s update on inflation with the April Personal Consumption Expenditures Deflator. As of 7:17 AM ET, the Dow is rising 0.4%, while the S&P 500 is up 0.3%. The Nasdaq 100 is increasing 0.7% relative to fair value on the GLOBEX.
U.S. equities were mixed on Tuesday as investors evaluated U.S.-Iran peace deal progress. Meanwhile, May consumer confidence fell from the prior month’s upwardly revised reading. Measures of home prices for March came in at or below expectations, while the Chicago Fed’s National Activity Index for April improved more than expected. The Dow was down 0.2%, while the tech-heavy Nasdaq Composite rose 1.2% and hit a new record closing level of 26656.18. The S&P 500 increased 0.6% and set a new record closing level of 7519.12, with six of 11 sectors finishing in positive territory. The Information Technology sector was the top performer, rising 1.7%, while the Energy sector was the bottom performer, falling 2.8%.
On the data front, the Mortgage Bankers Association’s gauge of mortgage applications decreased 8.5% for the week ending May 22 versus the prior week’s decrease of 2.3%. The Richmond Fed’s May Fifth District Survey of Manufacturing Activity will be released today, with the headline composite manufacturing index expected to rise to 4 from the prior month’s 3. The Dallas Fed will release their Texas Service Sector Outlook Survey for May, with the headline composite services index expected to improve to -6.0 from the prior month’s -9.9.
Across the pond, European stocks are higher in mid-day trading as German consumer confidence for May saw a smaller-than-expected decline from the prior month.
Overnight in Asia, stocks were mixed as Japan’s Services Producer Price Index decelerated to 3.0% year-over-year (YOY) in April from the prior month’s 3.3%. Australia’s Consumer Price Index cooled more than expected, with the increases slowing to 0.4% month-over-month and 4.2% YOY in April. The Westpac Leading Index for Australia increased slightly in April. China’s industrial profits increased 24.7% YOY in April versus prior month’s increase of 15.8% YOY. Meanwhile, South Korea’s retail sales increased by 7.2% YOY and department store sales increased by 21.7% YOY in April.
In FOREX trading, the U.S. dollar is slightly lower ahead of tomorrow’s U.S. inflation data.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 3.8% lower at $90.37/barrel amid investor hopes for a resolution in U.S.–Iran tensions.
In the metals complex, gold is 1.4% lower at $4,446.84/ounce despite a weakening U.S. dollar.