U.S. stocks close at record highs as tech earnings and AI optimism lift Wall Street

• Stock markets in Japan and South Korea reached all-time closing highs, with Tokyo’s Nikkei 225 jumping 2.5% to 66,329.50 and South Korea’s Kospi surging 3.6% to 8,476.15. • The rally was driven by optimism that the U.S. and Iran will extend their ceasefire, alongside lower-than-expected core inflation data in Tokyo for May.

• Global markets are focusing on critical geopolitical developments, specifically the U.S.-Iran ceasefire negotiations and tensions surrounding the Strait of Hormuz. • Investors are awaiting key economic indicators, including U.S. employment data and inflation figures from the euro zone, to gauge global financial health.

• Asian stock markets surged, led by South Korea’s KOSPI which jumped 3.2% to near record levels and Hong Kong’s Hang Seng index which rose 1%. • The rally was primarily driven by strong gains in semiconductor and artificial intelligence-linked shares, alongside optimistic hopes for peace in Iran.

• New research highlighted by Banking Dive says bank mergers and acquisitions in the U.S. may reduce innovation in the industry. • The study, from North Dakota State University, examined how consolidation affects patenting and research incentives among banks.

• Bank of America’s Bull & Bear Indicator rose to 8.5 from 8.0 on May 29, according to a market note, signaling a more bearish contrarian setup after the recent rally. • The move suggests investor sentiment is becoming more stretched even as U.S. equities hover near record territory and recession fears have eased.

• Bank of Montreal priced US$2.22 million of S&P 500-linked capped buffer notes due Nov. 30, 2027, according to a securities filing. • The notes offer 150% upside participation, a 20% downside buffer, and a maximum return of 10%, showing continued demand for structured products tied to U.S. equity markets.

• Fed Vice Chair for Supervision Michelle Bowman said on May 29 that inflation progress “appears to have stalled,” with total PCE inflation at 3.8% in April and core PCE at 3.3%. • She said the U.S. economy has remained resilient, but noted the labor market is vulnerable to shocks and that growth has slowed since last summer.

• Europe is facing an increasing risk of a trade war with China as a surge of cheap Chinese imports threatens the continent's domestic manufacturing sector. • The tension stems from global economic imbalances and the inability of European industries to compete with the volume and pricing of Chinese goods.

• South Korean shares reached a new record high on May 29, driven by a strong rally in technology stocks and growing optimism regarding stability in the Middle East. • The market surge was bolstered by investor confidence in semiconductor demand and a positive shift in geopolitical sentiment affecting global trade.

• Asian stock markets rose on Friday following news of a temporary 60-day ceasefire agreement between the U.S. and Iran. • The truce, which includes discussions regarding Iran's nuclear program, led to a decrease in energy prices and reduced economic anxiety for oil-importing nations.

• Stock markets in Japan and South Korea reached record highs following reports of potential deal hopes between the US and Iran. • Other regional markets showed mixed results, with Hong Kong's Hang Seng rising 0.9% to 25,222.38 and Australia's S&P/ASX 200 climbing 1.6% to 8,731.70.