Record Highs

• U.S. stocks finished at new closing highs on May 29, with the Dow up about 0.67% and major indexes extending weekly and monthly gains as technology shares led the rally. • The move was supported by upbeat earnings guidance from companies such as Dell and broader AI-related enthusiasm, while investors also watched inflation and Federal Reserve policy signals. • The rally matters because it shows investors still favor growth and AI-linked names even as concerns persist about inflation, oil prices, and the rate outlook.

• Asian stock markets rallied on Friday, with South Korea's KOSPI index reaching record highs. • The surge was driven by investor optimism following reports of a tentative 60-day ceasefire extension between the United States and Iran. • Gains were particularly strong in the technology sectors of Japan, South Korea, and China, while financial services led growth in Hong Kong and Singapore.

• South Korea's Kospi and Japan's Topix indices reached record highs as Asia-Pacific markets rose despite renewed tensions involving Iran. • Other regional markets also saw gains, with Hong Kong's Hang Seng index increasing by 1.1%, while China's CSI 300 remained unchanged. • The rally indicates that investors are currently prioritizing optimism regarding potential ceasefires over geopolitical instability in the Middle East.

• Global stocks retreated from record highs on Thursday following a new U.S. military strike on Iran and reports of missile attacks in Kuwait. • The escalation in Gulf tensions caused oil prices to surge by as much as 4% and led to a tumble in bond prices. • Investors are concerned that the instability undermines potential peace deals, which are viewed as critical for easing global inflation risks.

• ECB Vice President Luis de Guindos warned on Wednesday that the risk of a market correction is "elevated" as global stock indices continue to hit record highs. • De Guindos cited a volatile combination of outsized market valuations, fiscal challenges, and vulnerabilities within private credit as primary drivers of this instability. • Geopolitical turmoil, specifically mentioning the war in Iran, is highlighted as a significant external risk that could trigger a downturn.

• Wall Street stocks remained relatively flat on Wednesday, holding near record highs as investors maintained a cautious stance. • Crude oil prices declined as market participants reacted to potential progress in peace negotiations between the United States and Iran. • The shift in oil prices reflects a decrease in geopolitical risk premiums, with markets currently pricing in a 38.1% likelihood of a diplomatic breakthrough.

• The S&P 500 and Nasdaq reached record closing highs on Tuesday, driven by strong investor optimism surrounding artificial intelligence. • Micron Technology notably joined the $1 trillion market capitalization club, contributing to the broader tech rally. • Market gains occurred despite geopolitical tensions and anxiety regarding Middle East peace talks and recent U.S. strikes on Iran.