Global Stock Rally Powers On as Chip Shares Surge: Markets Wrap

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May 27, 2026 - 07:55

6 minutes

(Bloomberg) — Global equities extended their record rally as momentum in technology shares accelerated and geopolitical tensions eased. Oil slipped.The MSCI All Country World Index, the broadest measure of global equities, rose for a sixth straight day to a record. MSCI’s Asian benchmark climbed 0.9% to an all-time high, led by South Korea’s Kospi Index, whose near-100% surge this year made it the world’s top-performing equity gauge. Chip shares advanced, with SK Hynix Inc. extending its 12-month gain to over 1,000% and becoming the third Asian company to hit the $1 trillion market-capitalization milestone.Equity-index futures signaled a 0.1% gain for the S&P 500 and the Nasdaq 100 after the Wall Street benchmarks closed at record highs. Chipmakers led the charge in the US, with Micron Technology Inc. surging 19% to top $1 trillion in market value. European shares were also set to gain at the open.Elsewhere, Brent crude oil dropped 1.6% to $98 a barrel on expectations for the US and Iran to sign a peace deal. Treasuries extended their gains, sending the yield on the benchmark 10-year lower by one basis point to 4.47%. The dollar was weaker against most of its Group-of-10 peers, slipping most against the Kiwi after the Reserve Bank of New Zealand signaled it will most likely need to raise interest rates.The moves reinforced momentum behind the AI trade, with investors betting chipmakers will capture an outsized share of spending tied to the global AI buildout. Optimism that the Middle East conflict is moving toward a resolution also helped propel global equities to fresh highs, as traders speculate easing geopolitical risks could temper inflation pressures.“The war premium is fading, but the AI premium is still building,” said Hebe Chen, an analyst at Vantage Global Prime. That’s “opening a wider runway for the rally and rewarding the FOMO trade with fresh record highs.”While tech dominated, traders were also paying attention to the developments in the Middle East. President Donald Trump said talks to extend a ceasefire and reopen the Strait of Hormuz are proceeding. Secretary of State Marco Rubio cautioned that any accord would likely take a few days to finalize.Still, security in the waterway remained unclear after the two sides exchanged strikes overnight and US Central Command pushed back on reports that suggested the military was helping escort vessels.“Investors should be careful not to confuse progress with resolution,” said Josh Gilbert, lead analyst for Asia Pacific and the Middle East at Etoro Ltd. “Talks appear to be moving forward, and that’s positive, but we’ve seen this pattern before. The optimistic headlines have rapidly improved sentiment, but as of right now, the underlying issues remain on the table.”In other corners of the market, the Japanese yen traded around the 159 level against the dollar, keeping traders on alert for the risk of intervention by authorities to prop up the currency.However, the currency is poised to strengthen against the dollar, reversing months of underperformance and threatening to upend a popular trade that relies on a weak yen, according to Eurizon SLJ Capital’s Stephen Jen.The focus in Asia remained squarely on chipmakers, with SK Hynix seen at the center of the global AI buildout as a gauge of regional semiconductor shares climbed to a record.Memory chips have emerged as a critical bottleneck determining how quickly data centers can expand capacity. Investors and analysts expect memory chip shortages to last through 2027, giving SK Hynix and rivals Samsung Electronics Co. and Micron unusual pricing power over the world’s largest technology companies.SK Hynix became only the third Asian company to reach a $1 trillion valuation, joining Taiwan Semiconductor Manufacturing Co. and Samsung, which crossed the milestone earlier this month.“You have this triple effect on stocks: PE, earnings power, and concentration, and I think this can continue for some time,” Dan Heyler, senior analyst at EFM Asset Management, said on Bloomberg TV.Corporate Highlights:Former BP Plc Chairman Albert Manifold pushed back against what he described as a “false narrative” surrounding his surprise departure from the British supermajor. FTSE Russell adopted a rule change that will speed the addition of newly listed large-cap companies to its main indexes, weeks ahead of SpaceX’s expected record-breaking initial public offering. Taiwan prosecutors suspect that three individuals successfully smuggled at least one shipment of Nvidia Corp. AI chips to China after first exporting them to Japan, people familiar with the matter said. China has been slow-walking approval of Airbus SE plane deliveries to signal impatience with how long European regulators are taking to certify Chinese-made aircraft, according to people familiar with the matter. The Trump administration reached an agreement with Volvo Car AB that will allow the automaker to avoid a US ban on connected vehicles tied to China. European car sales climbed for the third consecutive month in April as consumers continued to snap up more electric and hybrid models. Some of the main moves in markets:StocksS&P 500 futures were little changed as of 6:51 a.m. London time Nasdaq 100 futures were little changed The MSCI Asia Pacific Index rose 0.9% The MSCI Emerging Markets Index rose 1.3% Japan’s Topix fell 0.4% Australia’s S&P/ASX 200 rose 0.5% Hong Kong’s Hang Seng fell 1% The Shanghai Composite fell 1.2% Euro Stoxx 50 futures rose 0.3% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1642 The Japanese yen was little changed at 159.33 per dollar The offshore yuan was little changed at 6.7799 per dollar The British pound was little changed at $1.3453 CryptocurrenciesBitcoin fell 0.6% to $75,560.32 Ether was little changed at $2,074.25 BondsThe yield on 10-year Treasuries declined one basis point to 4.47% Japan’s 10-year yield declined 1.5 basis points to 2.705% Australia’s 10-year yield declined five basis points to 4.86% CommoditiesSpot gold fell 0.2% to $4,499.80 an ounce West Texas Intermediate crude fell 2.1% to $91.89 a barrel This story was produced with the assistance of Bloomberg Automation.–With assistance from Winnie Hsu, Alice French, Carmeli Argana and Yvonne Man.©2026 Bloomberg L.P.