Market News Dashboard May 25, 2026

U.S. equity and bond markets were closed Monday, May 25, for Memorial Day, leaving global price discovery to Asia and overnight futures. With no domestic cash session, the narrative centered on three forces: easing crude on renewed U.S.–Iran diplomacy, record-breaking strength in Japanese and Korean equities, and a futures-led risk bid that carried into Tuesday’s premarket.

President Donald Trump said negotiations with Tehran were “proceeding nicely,” lifting Dow futures roughly 300 points and Nasdaq-100 contracts about 1% in holiday-evening trade. Oil pulled back sharply in Asia on hopes the Strait of Hormuz could reopen, helping Japan’s Nikkei 225 cross 65,000 for the first time and Taiwan’s Taiex to an all-time high. The tone was less one-sided by Tuesday morning: Iran pushed back on reports of an imminent deal, the U.S. conducted strikes in southern Iran, and Brent crude reversed higher even as West Texas Intermediate futures remained below Friday’s close.

Heading into the U.S. reopen, the setup still favors dip-buyers. The S&P 500 enters the week on an eighth consecutive weekly gain—its longest streak since late 2023—while Ed Yardeni argues the rally reflects “fabulous earnings momentum” rather than speculative multiple expansion. Semiconductor names led premarket gainers on geopolitical relief, Ferrari drew attention with its first electric vehicle, and strategists warned that seasonally weak summer months could test complacency after an extended run.

The holiday session unfolded as markets treated U.S.–Iran negotiations as the primary swing factor. President Trump posted on Truth Social that talks were “proceeding nicely,” while warning Washington could resume offensive operations if discussions falter. Iran, meanwhile, denied that a deal was imminent after U.S. officials signaled progress, underscoring the gap between diplomatic rhetoric and verified terms.

Equity futures responded positively to the initial tone, with Nasdaq-100 contracts outperforming on hopes that a lower war premium would support growth multiples. Oil’s Monday slide in Asia reinforced the inverse relationship that has defined much of 2026 trading. Yet Tuesday’s U.S. strikes on Iranian missile sites and vessels—described by U.S. Central Command as self-defense actions—reminded investors that ceasefire optimism can reverse quickly.

For portfolio construction, the lesson is unchanged: Middle East headlines remain the marginal driver for energy beta, transportation margins, and the pace of Fed repricing. Until Hormuz shipping normalizes and uranium terms are verified, expect headline-driven volatility even when headline indexes sit near highs.

Further reading: CNBC; CNBC weekly outlook.

Strategist Ed Yardeni coined “FEMO”—fabulous earnings momentum—to describe a market driven by rising forward profits rather than multiple expansion. Through Friday, the S&P 500 was up 9.2% year to date while forward earnings climbed 14.4% and the forward price-to-earnings ratio contracted 4.6%. Trivariate Research’s Adam Parker made a parallel point: projected 23% earnings growth in 2026 and 16% in 2027 can justify index levels even as valuations look stretched on trailing metrics.

That fundamental underpinning helps explain why the VIX near 16.7 and tight high-yield spreads coexist with geopolitical uncertainty. Investors are carrying risk because earnings revisions remain positive, not because they are ignoring macro threats entirely. The counterweight is seasonality: CNBC’s pre-holiday outlook noted that the unofficial start of summer often brings a pause after extended rallies, and the current eight-week streak invites profit-taking discussion.