NEW YORK, May 22, 2026, 18:01 (EDT)
Dow hits fresh record as stocks climbed Friday. The Dow Jones Industrial Average finished up 294.04 points, or 0.6%, at 50,579.70. The S&P 500 rose 27.75 points to 7,473.47 and the Nasdaq Composite added 50.87 points, ending at 26,343.97. Traders cited progress in U.S.-Iran talks and a solid run of earnings as drivers.
The S&P 500 booked an eighth week of gains, the longest streak since December 2023. Investors are watching this extended rally as they weigh costs linked to the Iran war, a shuffle at the Federal Reserve and another drop in U.S. consumer sentiment.
Stocks steadied after Secretary of State Marco Rubio said the U.S. had made progress toward a deal with Iran, but he cautioned that “more work [is] to be done” and “We’re not there yet.” Iran’s foreign ministry spokesman said key differences were still deep. Reuters
The Dow set an intraday record of 50,712.24, marking its first high since the U.S.-Iran conflict started. Markets looked like they were picking up confidence, with Art Hogan at B. Riley Wealth pointing to an “off-ramp” from the war as negotiations made progress. Reuters
S&P 500 sectors mostly rose. Nine out of 11 gained, with healthcare, utilities, industrials, and technology out front. Communications and consumer staples dropped.
Dell Technologies popped 17% and HP added 15% after Lenovo posted a 27% revenue increase that topped forecasts. That gave investors a sense that demand for PCs and hardware is holding up.
Chip stocks were in focus again, but direction was split. Qualcomm jumped 12% and helped push up the Philadelphia Semiconductor Index. Nvidia, though, dropped 1.9%, an unusual move for the chipmaker that has led tech gains this year.
Workday climbed 5% as the HR software provider topped forecasts for first-quarter revenue and earnings. Shares of Estée Lauder added 12% after the beauty firm and Spain’s Puig called off merger discussions.
Treasury yields pulled back as well, which gave equities some room. The 10-year U.S. Treasury yield dropped to 4.558%. James St. Aubin, chief investment officer at Ocean Park Asset Management, said the bond market looked to be “cooling off.” Reuters
The rally has rough edges. U.S. consumer sentiment hit a record low in May, the University of Michigan said, as households felt the pain from gasoline prices tied to the Iran war. “American consumers are angry about the economy,” Heather Long, chief economist at Navy Federal Credit Union, said. Reuters
Stock indexes are still moving up, but the risk is that inflation expectations also keep picking up. The survey put one-year inflation expectations at 4.8% and five-year at 3.9%. That could make things harder for the Fed if energy costs move into other prices.
U.S. equity funds saw $12.05 billion in net outflows in the week ended May 20, the biggest pullback since mid-March, as some investors locked in gains and fretted over higher long-term borrowing costs. The numbers come even as the market scored a record close.
Kevin Warsh was sworn in as Federal Reserve chair on Friday and won unanimous backing to head the Federal Open Market Committee, the panel in charge of U.S. rates. Warsh steps in as traders weigh if energy and supply-driven inflation will keep policy tighter for longer.
Buyers stayed in charge. On the New York Stock Exchange, advancing issues led decliners 1.68 to 1. The S&P 500 recorded 29 new 52-week highs, with no new lows.
