US stock futures are indicating another record opening on Wednesday, 27 May, as the rally in tech stocks continued to support Wall Street, even as hopes of a potential peace deal in the Middle East were clouded by the latest escalations in the region.
Contracts tied to the S&P 500 rose 0.3%, while futures on the Nasdaq 100 and Dow Jones climbed 0.1% and 0.7%, respectively. In the previous trading session, the tech-heavy Nasdaq touched a fresh intraday record high. The S&P 500 added 0.61%, while the blue-chip Dow Jones shed 118.02 points, or 0.23%.
Chip stocks have emerged as the biggest performers in 2026, with most of them delivering massive returns amid a revival in AI optimism and better-than-expected first-quarter corporate earnings, which overshadowed geopolitical concerns.
Earlier this week, hopes of peace were sparked after both the US and Iran signalled a willingness to end the nearly three-month conflict in West Asia. However, those hopes faded after the US launched fresh strikes on Iran, while Tehran on Tuesday denounced the latest US attacks as a sign of “bad faith and unreliability.”
The conflict in the region, which has now stretched into its 88th day, has kept energy prices elevated as the effective closure of the Strait of Hormuz disrupted crude supplies, prompting several Middle Eastern nations to reduce production.
Investors were hoping that a positive breakthrough between the US and Iran could lead to the reopening of the key waterway, easing inflationary pressures and reducing concerns over potential rate hikes by the US Federal Reserve.
Despite the impasse, confidence grew that the three-month conflict would remain contained, with traders taking cues from signs of diplomatic progress even as attacks continued.
US Secretary of State Marco Rubio stated that any agreement would likely take a few days to finalise, while earlier US President Donald Trump indicated that talks with Iran to end the war were “proceeding nicely.”
In the currency market, the dollar index, which measures the greenback against a basket of currencies, was little changed at 99.07 after rising 0.15% on Tuesday.
Markets will next turn their focus to the Personal Consumption Expenditures (PCE) index data due on Thursday. The Federal Reserve’s preferred inflation gauge could provide fresh clues on the future monetary policy path under new Fed Chair Kevin Warsh.
Money markets currently expect the Fed to keep interest rates steady for the rest of the year, with some traders pricing in a 25-basis-point rate hike in December.
Brent crude hits over one-month low
Crude prices were trading lower, with US crude falling 3.8% to $90.08 a barrel and Brent crude losing 3.1% to $96.48 per barrel, its lowest level since mid-April. In the current week, Brent crude was down 9% so far after declining 5.2% in the previous week.
However, prices are still nearly 30% higher compared to levels before the escalation in the Middle East conflict.
US stocks in focus today
Micron Technology shares surged another 9% in pre-market trade after gaining 19% on Tuesday. The latest rally propelled the company into the $1 trillion market capitalisation club. Its South Korean peer, SK Hynix, also crossed the $1 trillion market value mark overnight.
Weaker-than-expected first-quarter results dragged Dick’s Sporting Goods shares 3% lower. Likewise, Zscaler shares crashed 25% after earnings, while Bath & Body Works was also down 10% in pre-market trade following its first-quarter results.
On the gaining side, MGM Resorts International rose 4% after its Q1 results.
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