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Stocks climb to new records amid peace prospects; chip stocks rally

The S&P 500, Nasdaq 100, and Russell 2000 all closed at record highs after President Donald Trump said negotiations with Iran are “proceeding nicely” and reports emerged that the US Navy has restarted shepherding vessels through the Strait of Hormuz. Chip and memory stocks rallied, led by Micron soaring after UBS more than tripled its price target, while energy stocks fell as oil prices declined on the peace prospects.

read2 min publishedMay 26, 2026

Hopes of an imminent peace deal with Iran and reports that the US Navy has restarted shepherding vessels through the Strait of Hormuz sent stocks higher and oil prices lower.

The S&P 500, Nasdaq 100, and Russell 2000 all notched fresh record closing highs after President Donald Trump said in a Truth Social post that negotiations with Iran are “proceeding nicely.” Trump’s comments, along with reports that the US Navy has restarted shepherding vessels through the Strait of Hormuz, contributed to a worldwide rally in stocks and sell-off in crude oil.

Information technology was the best-performing sector as chip and memory stocks rallied, while energy was the worst-performer as oil prices fell.

Stocks that moved higher:

Micronsoared, with its market captopping $1 trillion for the first time, after UBS more than tripled its price target to $1,625 from $535. The massive upgrade lifted the entire memory sector, withSandisk,Western Digital, andSeagate Technology Holdingsall climbing on the news.Oklojumped after saying it's inadvanced negotiations with the US Department of Energyto recycle Cold War-era plutonium into commercial nuclear fuel.Qualcommspiked after a report that it'sreached a deal to supply AI chips to TikTok owner ByteDance.Modinesoared after announcing a$4 billion data center cooling deal.TeraWulfjumped after announcing itsacquisition of a 1-gigawatt Kentucky data center site.Vicorsurged afterboosting its Q2 revenue guidanceto $142 million from $126 million. The raised guidance lifted power semiconductor peers, withWolfspeedandNavitas Semiconductoralso soaring on the news combined with positive spillovers from a Huawei tech breakthrough.Oustersurged after announcing astrategic agreementto supply its lidar technology for ARGUS Interception's defense drones.Pony AIclimbed after saying it expects its2026 robotaxi revenue to be 3.5 times its 2025 level.

Stocks that moved lower:

Ferraridropped afterunveiling its first fully electric vehicle.BPtumbled after its boardremoved Chairman Albert Manifold, citing unacceptable governance oversight and conduct issues.AutoZonesank on aQ3 revenue miss.Krogerfell afterannouncing price cutsaimed at taking onWalmartandCostco, raising margin concerns.Enhanced Groupplunged after the Enhanced Games producedmerely one record-breaking performance, with several clean athletes winning events.Dropboxdipped after its CEOannounced he's stepping downafter 19 years in charge of the cloud storage company.

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