Key Takeaways:
- Nasdaq 100 gains 1.5% in intraday trading on May 26
- S&P 500 and Dow futures point to a positive open
- Tech and energy sectors lead as oil prices climb toward $100
Back
Nasdaq 100 surges 1.5% as tech stocks lead broad market rally
The Nasdaq 100 surged 1.5% on May 26, extending gains as technology stocks rallied on optimism around US-Iran peace negotiations and strong momentum in big-tech earnings.
"The market is benefiting from a dual catalyst — easing geopolitical risk in the Middle East and continued confidence in AI-driven earnings growth," said Sarah Lin, equity strategist at Edgen. "Capital is rotating back into growth names as the macro outlook stabilizes."
The S&P 500 added 0.7% in futures trading, while the Dow Jones Industrial Average pointed to a 0.7% gain at the open. The rally followed a public holiday on Monday that kept US cash markets closed. The Cboe Volatility Index eased as the geopolitical premium faded, though an exact level was not yet available in pre-market trading.
The advance was broad-based, with technology and energy sectors leading. Among individual names, semiconductor and software stocks posted strong gains, reflecting continued investor appetite for AI-related exposure. Brent crude rose 2.87% to $98.90 a barrel, approaching the $100 threshold, as ceasefire talks reduced supply disruption fears while keeping prices elevated. West Texas Intermediate diverged, falling 4.38% to $92.37 a barrel, highlighting the regional nature of supply expectations.
In Europe, the FTSE 100 climbed 0.91% to 10,542.20, supported by gains in energy and mining stocks. Glencore rose 2.57%, Rio Tinto added 2.42%, and Endeavour Mining advanced 3.22%. International Consolidated Airlines Group gained 2.77% on travel demand optimism tied to the ceasefire talks.
In Asia, the session was mixed. Tokyo's Nikkei 225 declined 0.25%, while Hong Kong's Hang Seng edged up 0.05%. China's Shanghai Composite fell 0.17%, South Korea's Kospi added 2.55%, and Australia's ASX 200 dipped 0.39%.
The rally comes as traders weigh the implications of a potential US-Iran détente, which could ease energy supply concerns while reducing the geopolitical risk premium embedded in equity valuations. The next catalyst for markets will be this week's economic data releases, including durable goods orders and the personal consumption expenditures price index, which will inform the Federal Reserve's rate path.
This article is for informational purposes only and does not constitute investment advice.
[1] FTSE 100 Live: Kingfisher Jumps 4.14% to Lead FTSE 100 Gainers; Melrose, Rightmove Slide[2] 2 Reasons to Sell AFRM and 1 Stock to Buy Instead[3] NUKZ Caught the Nuclear Restart Wave But Holds Less Than $1 Billion in Assets,...[4] GTS Securities Slashes Its XOVR Stake -- Selling $354 Million Worth of Shares
