Opening Comment — Tuesday, May 26, 2026
DJIA: 50,579.70, up 294.04
S&P 500: 7,473.47, up 27.75
NASDAQ: 26,343.97, up 50.87
Stocks higher following peace deal optimism
Stock futures are higher Tuesday morning following hopes for a peace deal between the U.S. and Iran despite the U.S. conducting military strikes over the holiday weekend. Meanwhile, investors are awaiting today’s March home price data and May consumer confidence release. Markets are also looking forward to April’s personal income, personal spending, and Personal Consumption Expenditures (PCE) Deflator data, out on Thursday. As of 7:24 AM ET, the Dow is rising 0.6%, while the S&P 500 is up 0.7%. The Nasdaq 100 is increasing 1.0% relative to fair value on the GLOBEX.
U.S. equities were higher on Friday as the finalized reading of May consumer sentiment from the University of Michigan was revised lower to 44.8, alongside upwardly revised one- and 5–10-year inflation expectations of 4.8% and 3.9%, respectively. The Dow was up 0.6% and reached a new record closing level of 50579.70, while the tech-heavy Nasdaq Composite rose 0.2%. The S&P 500 increased 0.4% with nine of 11 sectors finishing in positive territory. The Health Care sector was the top performer, rising 1.2%, while the Communication Services sector was the bottom performer, falling 0.7%.
On the data front, the Federal Reserve (Fed) Bank of Chicago’s National Activity Index for April is expected to come in at negative 0.03, up from the prior month’s negative 0.20. The Philadelphia Fed’s Nonmanufacturing Business Outlook Survey for May will be released today, with the diffusion index of current general activity forecasted to improve to negative 13.0 from the prior month’s negative 16.5. The Federal Housing Finance Agency’s House Price Index is expected to show an increase of 0.1% month-over-month (MOM) in March, compared to the prior month’s little change. The S&P CoreLogic Case-Shiller 20-City Home Price Index for March is expected to register a decrease of 0.10% MOM and an increase of 0.90% year-over-year (YOY), versus the prior month’s decrease of 0.05% and increase of 0.90%, respectively. The Conference Board’s reading of May consumer confidence is projected to come in at 92.0 versus the prior month’s 92.8. The Dallas Fed’s Texas Manufacturing Outlook Survey for May will be released, with the general business activity index forecasted to come in at 0.0 from the prior month’s negative 2.3.
Across the pond, European stocks are mostly lower in mid-day trading as France’s retail sales increased 0.3% YOY in April.
Overnight in Asia, stocks were mostly lower as Japan’s nationwide department store sales in April increased by 5.2% YOY and the country’s finalized March Leading Index was revised slightly lower.
In FOREX trading, the U.S. dollar is lower following hopes for a resolution to the Iran war.
In the metals complex, West Texas Intermediate (WTI) crude oil is 4.8% lower at $91.92/barrel.
Over in the commodity pits, gold is 0.8% lower at $4,534.25/ounce despite a weakening U.S. dollar.