AI Optimism Lifts US Stocks at Open as Oil Slumps on Iran Peace Hopes

US stocks opened modestly higher on May 27, 2026, driven by continued demand for AI-linked shares and a sharp decline in oil prices as investors tracked US-Iran negotiations aimed at restoring shipping through the Strait of Hormuz. The Dow Jones Industrial Average gained 140 points, or 0.3%, while the S&P 500 edged up 0.01%; the Nasdaq Composite slipped 0.03%. The Philadelphia Semiconductor Index fell 0.9%. WTI crude tumbled 4.4% to below $90 a barrel, relieving inflation fears, after Iran media reported a draft peace deal that could reopen the key chokepoint within a month. AI and memory chip stocks extended their rally, with Micron Technology (MU) up 3.3% and TSMC’s ADR rising 3.8%. Cybersecurity names bucked the trend: Palo Alto Networks (PANW) dropped 2.3% and CrowdStrike (CRWD) fell over 3% following weak sector sentiment. Goldman Sachs raised its 2026-end S&P 500 target to 8,000 from 7,600, citing strong first-quarter earnings and improved profit outlooks. Analysts cautioned that an Iran deal is not final, but the AI narrative continued to dominate market risk appetite.