All Three Major US Stock Indexes Hit Record Highs as Lower Oil Supports the Market
At the early hours of May 28 Beijing time, US stocks closed higher on Wednesday, with the Dow, Nasdaq and S&P 500 all hitting record highs. Micron Technology extended its strong run, while crude oil moved lower on hopes of a US-Iran ceasefire.
All Three Indexes Set New Records
The Dow rose 182.60 points, or 0.36%, to 50,644.28; the Nasdaq gained 18.55 points, or 0.07%, to 26,674.73; and the S&P 500 added 1.24 points, or 0.02%, to 7,520.36.
Gains in the technology sector pushed the broader market and the tech-heavy Nasdaq to fresh intraday and closing highs in the previous session. The S&P 500 rose 0.61% on Tuesday, while the Nasdaq jumped 1.19%.
Lower Oil Prices Supported the Market
Falling oil prices offered support to the market. According to reports, US crude futures dropped more than 5% to around $88 a barrel after Iranian state television said the country had pledged to restore commercial passage through the Strait of Hormuz to prewar levels within a month.
The White House denied the Iranian media report, calling it “completely fabricated.”
Micron Technology Extends Its Epic Rally
Micron Technology closed up 3.6% on Wednesday. The stock had surged 19% the previous day after a bullish UBS report, taking its market value above $1 trillion for the first time.
UBS believes the stock still has more than double upside as memory suppliers sign long-term contracts to support AI deployment. Investors have turned to memory chip makers as a preferred way to play the AI bull market. Micron peer SK Hynix in South Korea also reached a $1 trillion market cap overnight.
Market Focus Turns to Further Valuation Upside
Investors were also encouraged by remarks from US President Trump, who said talks to end the war with Iran were “going well.” Although the US carried out a “self-defense” strike in southern Iran early Tuesday, Central Command spokesman Tim Hawkins said the US had shown restraint during the “ongoing ceasefire” between the two countries.
Expectations that tensions with Iran would ease, together with a strong earnings season, helped push stocks to records this month. But Citi US equity strategist Drew Pettit believes there is limited room for further gains, while Goldman Sachs raised its year-end target for the S&P 500, citing continued strong earnings growth.
