AI Rally, US-Iran Peace Hopes Push US Stocks Higher; Semiconductor Index Surges 3.6%

U.S. stocks opened higher on May 26, 2026, as the artificial intelligence rally persisted and investors bet on a diplomatic resolution between the U.S. and Iran, lifting risk assets. The Nasdaq Composite and S&P 500 approached record highs. The Philadelphia Semiconductor Index surged 3.6%, led by Micron’s (MU) 11.6% gain. The Dow Jones Industrial Average added 0.3%, while TSMC’s ADR rose 1.8%. Brent crude oil fell 4% to $96.24 a barrel, and the 10-year Treasury yield dropped 7 basis points to 4.48%, easing geopolitical and inflation concerns. Market sentiment improved after the White House signaled progress in talks with Iran, reducing fears of a wider Middle East conflict. The AI demand outlook and anticipation of a potential SpaceX IPO further fueled gains in technology and space-related stocks. Investors also monitored upcoming inflation data and a two-year note auction for clues on the Federal Reserve’s rate path.