New York, May 26, 2026, 06:01 EDT
- Dow, S&P 500 and Nasdaq 100 futures climbed in early trading. Chip stocks were among the top gainers premarket.
- U.S. markets were due to reopen after the Memorial Day break, as investors watched Iran talks, oil prices and consumer confidence.
- Inflation and bond yields are still the main threats for a rally that’s taken major indexes close to or at record highs.
U.S. stock futures traded higher Tuesday as markets reopened after Memorial Day, with chip stocks up and investors watching talks aimed at calming the Middle East conflict that has fueled oil prices and inflation concerns.
Stocks are pulling back after a big surge. The Dow set a record close on Friday and the S&P 500 gained for the eighth week in a row, lifted by AI demand and an earnings season that beat worries.
Dow E-minis rose 244 points, or 0.48%, to start early trading at 4:50 a.m. ET, while S&P 500 E-minis added 38.75 points, or 0.52%. Nasdaq 100 E-minis gained 228.25 points, or 0.77%, according to Reuters. E-minis track the main stock indexes and traders often look at them to get a read on the market before the open.
U.S. stock markets did not open on Monday for Memorial Day. Both the NYSE and Nasdaq say they will close for Memorial Day again in 2026, which falls on Monday, May 25, according to the NYSE calendar.
Chip stocks were out front early. Marvell Technology was up 5.7% ahead of the open. Micron and Intel each gained about 2%. Investors kept going with the AI trade, which has driven most of this year’s equity gains.
Stocks are seeing buyers come in on weakness as “investors still appear willing to buy dips,” Daniela Hathorn, senior market analyst at Capital.com, said. She noted the market traded as if it expects the conflict to de-escalate. Reuters
Oil prices rose after U.S. forces hit southern Iran, Reuters’ Morning Bid said. Talks carried on in Doha, and the market stayed alert for any deal that could let ships move through the Strait of Hormuz again. Rising energy costs often show up in higher prices for fuel and transport, lifting inflation.
Heavier data is on deck. The Conference Board’s U.S. Consumer Confidence Index is out later Tuesday, and forecasts see it slipping to 92 for May. Gasoline prices are expected to put pressure on households, according to Reuters’ market preview.
Dow ended Friday up 294.04 points at 50,579.70, while the S&P 500 finished 27.75 points higher at 7,473.47. The Nasdaq Composite gained 50.87 points to 26,343.97. With futures less stretched after these moves, investors are still stepping in on strength, but prices are high.
UBS Global Wealth Management lifted its 2026 S&P 500 year-end target to 7,900 from 7,500, calling out steady consumer spending and data-center demand. “We continue to believe the bull market drivers remain intact,” UBS strategists said. UBS said the earnings backdrop still looks supportive. Reuters
Still, gains are getting more concentrated in a handful of heavyweights. Nvidia’s revenue outlook topped analyst targets last week, with Edward Jones’ Brock Weimer saying the numbers showed “robust AI-related spending trends.” Investors now look ahead to Salesforce, Dell, Costco, and Best Buy, which all report this week. Their results could show if software, server demand and shoppers can keep up. Reuters
Markets may have baked in much of the positive news already, says Anthony Saglimbene, chief market strategist at Ameriprise. He said with earnings season behind, focus is shifting to the macro backdrop. If oil holds at current levels, yields move higher or the Iran talks break down, stock inflation worries seen earlier this month could come back fast.
Stocks opened firmer after the long weekend as buyers kept pressing AI names higher. Futures stayed in the green, with the session starting on a strong note. Cash trading later this morning, along with consumer-confidence figures and potential Middle East updates, are all set to challenge the early gains.
