US open: Stocks higher as crude retreats, diplomatic momentum improves

26th May 2026 13:09

(Sharecast News) - Major indices were in the green early on Tuesday as oil prices fell and hopes grew that negotiations to end the US and Israel's conflict with Iran were making progress.

As of 1510 BST, the Dow Jones Industrial Average was up 0.18% at 50,669.02, while the S&P 500 advanced 0.71% to 7,526.64 and the Nasdaq Composite came out of the gate 1.17% firmer at 26,651.62.

The Dow opened 89.32 points higher on Tuesday, extended gains recorded in the previous session, after Donald Trump said talks with Iran were "proceeding nicely", though he warned the US could resume offensive operations if discussions broke down. Crude prices retreated sharply following his comments, with West Texas Intermediate down 3.79% at $92.94 a barrel.

Even so, with oil still elevated and inflation pressures persistent, expectations for looser Federal Reserve policy remained muted, with traders now pricing in an 8.5% chance of a July rate hike, up from 0.9% a month earlier.

The US also later confirmed it had carried out new strikes on southern Iran, targeting missile sites and boats allegedly attempting to lay mines. US Central Command said the actions were taken in "self‑defence" to protect American forces, adding that the military continued to show restraint during the ongoing ceasefire. Iran has yet to respond publicly, though a foreign ministry spokesman earlier said that while progress had been made in talks, a deal "is not imminent". It remains unclear how the latest strikes will affect the prospects for a peace agreement.

On the macro front, the Chicago Federal Reserve's national activity index strengthened in April, rising to +0.14 from a revised -0.15 in March and marking its highest reading in more than a year. The improvement was driven largely by a rebound in production, with production‑related indicators contributing +0.18 after a -0.13 drag the month before. Sales, orders and inventories also made a modest positive contribution of +0.02. By contrast, employment indicators slipped slightly into negative territory at -0.02, while personal consumption and housing subtracted -0.04, with both categories moving down from neutral in March.

Elsewhere, US home‑price growth slowed in March, according to the latest S&P/Case‑Shiller data, with the national index rising 0.7% year‑on‑year, down from 0.8% in February. S&P said more than half of the 20 major US housing markets recorded annual declines, pointing to a "broadening and deepening housing slowdown". With consumer inflation running roughly 3.3% in March, home values fell in real terms for the tenth consecutive month.

On a monthly basis, the national index rose 0.7% before seasonal adjustment, while the ten‑city and 20‑city composites gained 1.2% and 1%, respectively. After seasonal adjustment, however, the national and 20‑city indices both fell 0.2%, and the 10‑city edged down 0.03%. Over the past six months, national prices have risen just 0.3%, matching the prior half‑year and signalling a market "nearly at a standstill". S&P also noted that mortgage rates have resumed climbing, with the 30‑year fixed rate rising back to around 6.4% by late March, further tightening affordability for buyers.

On another note, US consumer confidence slipped slightly in May, according to the the Conference Board, with the headline index edging down to 93.1 from an upwardly revised 93.8 in April. The Conference Board said the present situation index, which tracks consumers' assessment of current business and labour‑market conditions, fell more sharply to 121.2, down 3.2 points on the month. By contrast, the expectations index, which reflects the short‑term outlook for income, business and employment, ticked up to 74.4.

Still to come, the Dallas Federal Reserve's May manufacturing index will follow at 1530 BST.

No major corporate earnings were slated for release on Tuesday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Caterpillar Inc. (CAT) $900.13 2.19%

Intel Corp. (INTC) $122.78 2.04%

Goldman Sachs Group Inc. (GS) $1,008.06 1.40%

3M Co. (MMM) $154.30 1.25%

Travelers Company Inc. (TRV) $308.41 0.76%

JP Morgan Chase & Co. (JPM) $308.67 0.71%

Apple Inc. (AAPL) $310.36 0.67%

Verizon Communications Inc. (VZ) $48.31 0.54%

Boeing Co. (BA) $220.13 0.43%

American Express Co. (AXP) $312.21 0.40%

Dow Jones - Fallers

Unitedhealth Group Inc. (UNH) $379.02 -1.94%

Johnson & Johnson (JNJ) $230.27 -1.34%

International Business Machines Corporation (CDI) (IBM) $250.70 -1.22%

Microsoft Corp. (MSFT) $416.34 -1.07%

Chevron Corp. (CVX) $190.13 -0.84%

Nike Inc. (NKE) $44.32 -0.74%

Dow Chemical Co. (DOW) $35.78 -0.72%

Amgen Inc. (AMGN) $338.39 -0.62%

Merck & Co. Inc. (MRK) $121.43 -0.51%

McDonald's Corp. (MCD) $280.75 -0.46%

S&P 500 - Risers

Micron Technology Inc. (MU) $851.64 14.81%

Skyworks Solutions Inc. (SWKS) $81.88 9.36%

NetApp Inc. (NTAP) $141.79 9.00%

Qorvo, Inc. (QRVO) $106.43 7.55%

QUALCOMM Inc. (QCOM) $238.89 7.41%

Microchip Technology Inc. (MCHP) $98.90 7.11%

Western Digital Corp. (WDC) $522.03 6.87%

Analog Devices Inc. (ADI) $420.77 6.52%

American Airlines Group (AAL) $14.56 5.86%

CenturyLink Inc. (LUMN) $9.85 5.36%

S&P 500 - Fallers

AutoZone Inc. (AZO) $3,115.55 -8.94%

Coterra Energy Inc. (CTRA) $32.56 -8.62%

Take-Two Interactive Software Inc. (TTWO) $223.90 -4.96%

O'Reilly Automotive Inc. (ORLY) $88.50 -4.50%

Advance Auto Parts (AAP) $56.44 -3.91%

Ipg Photonics Corp. (IPGP) $117.24 -3.47%

Costco Wholesale Corp. (COST) $1,002.52 -3.31%

Tractor Supply Company (TSCO) $30.44 -3.15%

Lamb Weston Holdings, Inc. (LW) $42.94 -2.94%

Adobe Systems Inc. (ADBE) $240.05 -2.83%

Nasdaq 100 - Risers

Micron Technology Inc. (MU) $851.64 14.81%

Skyworks Solutions Inc. (SWKS) $81.88 9.36%

QUALCOMM Inc. (QCOM) $238.89 7.41%

Microchip Technology Inc. (MCHP) $98.90 7.11%

Western Digital Corp. (WDC) $522.03 6.87%

Analog Devices Inc. (ADI) $420.77 6.52%

American Airlines Group (AAL) $14.56 5.86%

Texas Instruments Inc (TXN) $324.13 5.20%

NetEase Inc. Ads (NTES) $120.77 4.55%

KLA-Tencor Corp. (KLAC) $1,949.69 4.15%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $0.34 -13.49%

Workday, Inc. (WDAY) $123.93 -5.44%

Take-Two Interactive Software Inc. (TTWO) $223.90 -4.96%

O'Reilly Automotive Inc. (ORLY) $88.50 -4.50%

Mercadolibre Inc. (MELI) $1,624.48 -4.30%

Costco Wholesale Corp. (COST) $1,002.52 -3.31%

Adobe Systems Inc. (ADBE) $240.05 -2.83%

Charter Communications Inc. (CHTR) $143.08 -2.65%

Dollar Tree Inc (DLTR) $93.49 -2.62%

Verisk Analytics Inc. (VRSK) $168.30 -2.31%