Wall Street's main indexes traded near record highs on May 26, supported by strong investor optimism in artificial intelligence, even as geopolitical tensions between the US and Iran persisted. The Dow Jones Industrial Average fluctuated slightly but hovered around 50,461 to 50,686 during May 26-27, while the S&P 500 and Nasdaq Composite climbed to new highs [1, 2, 3, 4, 5, 6, 7, 8]. Art Hogan, Chief Market Strategist at B Riley Wealth, said markets showed "cautious optimism" focused on planning an exit from the conflict, noting inflation and energy prices would take time to normalize [1].
Semiconductor stocks led the gains, with Micron Technology soaring over 19% on May 26, boosting its market capitalization past $1 trillion. Taiwan Semiconductor Manufacturing Company (TSMC) American Depositary Receipt (ADR) shares also rose about 1.9% to approximately $412, reflecting strength in Taiwan’s chip sector [1, 9, 4, 5, 6, 8]. The surge in semiconductors underpinned broader tech sector enthusiasm across both US and Taiwanese markets [3, 4, 5, 6, 7, 10, 11, 8].
On May 27, Taiwan’s stock market opened sharply higher. The Taiwan stock index jumped over 1,000 points early in trading to break past 44,600, buoyed by continued gains in technology and semiconductor shares including TSMC. The index closed at a record high of 44,256.80 points, up 731 points for the day, with a trading volume hitting approximately 1.55 trillion New Taiwan dollars [10, 11, 8]. TSMC shares closed at 2,300 NT, up 30 NT [11, 8].
Oil prices were volatile amid the Middle East tensions and reports of preliminary US-Iran negotiations on Strait of Hormuz shipping. Brent crude fluctuated roughly between $96 and $99.58 per barrel around May 26-27, reflecting uncertainty. US Secretary of State Marco Rubio said a deal with Tehran could be reached "within days," while Iran requested the release of $24 billion in frozen funds [1, 9, 4, 6, 12]. Rubio added the deal could "take a few days" [1].
Despite the overall market strength, some technology stocks including cybersecurity firms saw declines on May 27 due to disappointing earnings forecasts [9]. Semiconductor sector performance appeared mixed in early trading on May 27, with some indexes falling slightly while TSMC ADR continued to rise [9, 12].
Wall Street and Taiwan markets remain alert to further developments in US-Iran diplomacy and upcoming corporate earnings. The Taiwan stock market closed Friday, May 27, at a historic high after two days of strong momentum led by semiconductor stocks.
