North American Morning Briefing: AI Exuberance Drives Stock Futures Higher

OPENING CALL

Stock futures were advancing again Wednesday as another technology company was welcomed into the $1 trillion club.

SK Hynix followed in the footsteps of Micron to join the ranks of companies with 13-figure market caps.

Also supporting sentiment was easing oil prices. Brent crude dropped below $95 early Wednesday on enduring hopes for a resolution to the war in Iran.

"The stock market has become desensitized to headlines from Iran, and there have been many, and it knows that oil prices near $100 per barrel is likely a temporary shock rather than a new normal," Resonate Wealth Partners said.

"When stocks hit record highs, that momentum can continue, as new highs tend to point to even more new highs."

Meanwhile, comments from Federal Reserve officials today could provide more cues on monetary policy.

HSBC Private Bank said it agreed with markets that the Fed should remain on hold this year .

Stocks to Watch

AkzoNobel surged some 15% after it rejected a $14.5 billion takeover proposal from Japan's Nippon Paint and U.S. rival Sherwin-Williams.

Marvell Technology jumped around 5% premarket ahead of its earnings update due this evening.

Naturgy Energy Group slid after buyout group CVC, the Spanish energy company's second-biggest shareholder, sold its stake at a discount.

Salesforce is scheduled to publish financials after the market closes. Its stock has fallen 32% so far this year.

Zscaler shared a cautious outlook for its full fiscal year, as rising memory costs and changes to its sales leadership team spurred uncertainty. Shares slid more than 20% premarket.

Watch For:

Speeches from Fed Vice Chair Philip Jefferson and governor Lisa Cook; earnings from Marvell Technology, Salesforce, Bank of Montreal

Today's Top Headlines/Must Reads:

- Ford's Stock Is Surging-and It's Got Nothing to Do With Its Car Business

- SpaceX's Rocket Monopoly Gives It an Edge Over OpenAI in the IPO Race

- North Korea Tests Its Own Version of U.S. Himars Missiles

MARKET WRAPS

Forex:

The dollar fell against a basket of currencies as traders remained optimistic about a U.S.-Iran peace deal even after the U.S. launched new strikes earlier this week.

"Despite the escalating tensions, back-channel talks between the two sides appear to continue, with both parties believed to be seeking a diplomatic resolution," Danske Bank said.

Oil prices eased, weakening the dollar as the U.S. is a net oil exporter. Improved risk sentiment also weighs on the dollar due to the currency's safe-haven status.

Sucden Financial said markets were not convinced about a near-term resolution to the U.S.-Iran conflict.

It said that sentiment had improved on cautious optimism surrounding negotiations, and safe-haven demand for the dollar persisted, but headline fatigue was emerging .

Bonds:

The 10-year Treasury yield fell as oil prices also declined amid the prospect of the U.S.-Iran deal that would lead to the reopening of the Strait of Hormuz.

HSBC Private Bank said the Middle East conflict was keeping government bond volatility elevated and had increased cross-asset correlations, reducing the diversification qualities of bonds.

Energy:

Oil prices pulled back on optimism for a U.S.-Iran peace deal.

Investors are balancing signs of diplomatic progress against renewed military tensions, as the U.S. struck Iranian speedboats it said were laying mines in the Strait and Tehran retaliated by firing on U.S. planes.

Metals:

Gold prices fell below $4,500 a troy ounce in early European trading, failing to hold gains achieved earlier this week as renewed tensions between the U.S. and Iran worry traders.

"Overall sentiment has improved on cautious optimism surrounding Iran-U.S. negotiations," Sucden Financial said.

"However, conviction in a near-term resolution remains limited ."

XS said gold's safe-haven status was being tested during the current geopolitical tensions.

Aluminum

Three-month futures on the LME climbed to their highest level since 2022 .

Prices were expected to remain elevated in the near term as tightening global supplies due to Middle East disruptions continue to be the main bullish driver.

   TODAY'S TOP HEADLINES 

SK Hynix, Micron Join Trillion-Dollar Club

Memory-chip makers SK Hynix and Micron Technology have joined an elite group of companies with market values exceeding $1 trillion amid the artificial-intelligence-driven chip boom.

Shares of the world's second-largest memory-chip maker SK Hynix have more than tripled this year. On Wednesday, they closed 9.3% higher, bringing the South Korean firm's market capitalization to 1.599 quadrillion won, equivalent to $1.061 trillion.

Samsung Electronics Union Approves Bonus-Pay Deal

Samsung Electronics' unionized workers have approved a tentative bonus-pay deal reached last week with the company, averting a strike at the world's largest memory-chip maker.

Samsung's union said in a statement Wednesday that 73.7% of participating union members voted in favor of the agreement in the ballot.

Marvell Has a High Bar to Meet. Wall Street Expects AI Demand to Fuel a Huge Quarter.

Marvell Technology's revenue is expected to have jumped in its latest quarter as the artificial intelligence hardware maker's products remain in high demand.

Marvell is scheduled to report first-quarter financials after the stock market closes on Wednesday. Analysts tracked by FactSet expect the company to post adjusted earnings of 79 cents a share for the April quarter. Revenue is expected to be $2.4 billion, which would be a 27% increase from the previous year's $1.9 billion.

U.S. Stocks Set to Extend Record Highs as Peace Talks Optimism Holds

Global stocks extended a rally as investors remained optimistic that peace talks between the U.S.-Iran are progressing, despite a fresh exchange of strikes earlier this week.

Brent crude oil slipped to $95 a barrel as market sentiment lifted more broadly. Yields on government bonds fell, while the dollar slipped as investors pulled back from the safe-haven asset.

Oil Prices Drop After Iran Accuses U.S. of 'Flagrant' Cease-Fire Violation

Oil prices fell Wednesday as investors remained optimistic about peace in Iran despite mounting tensions following U.S. strikes in the Strait of Hormuz.

Iran's foreign ministry accused the U.S. of a "flagrant" violation of the cease-fire following "multiple instances of maritime piracy against Iranian commercial vessels," in a statement reported by the country's Tasnim News Agency.

Financial Markets Underestimate Geopolitical And Fiscal Risks, ECB Warns

Investors underestimate the degree of risk they face as a result of the conflict in the Middle East and rising government debts, the European Central Bank said Wednesday.

In its twice-yearly report on the eurozone's financial system, the ECB said market moves in response to the conflict had been "orderly," but continued to reflect complacency in the face of increased uncertainty about the economic outlook.

Iran Pursues Deal That Brings Economic Relief Without Handing Trump Victory

Iran is pursuing two intertwining goals in its negotiating strategy with the U.S., say Iranian officials and Arab mediators: securing financial relief for an economy that is under severe strain without giving enough ground on its nuclear program to allow President Trump to claim victory.

Iran mostly shook off an overnight skirmish with U.S. forces in which it lost several Islamic Revolutionary Guard Corps fighters, staying at the negotiating table on Tuesday. Tehran has been seeking economic relief by regaining control of some of the $100 billion in assets frozen by the West and regaining access to world oil markets, these officials say.

China's Industrial Profits Rise, Defying Economic Headwinds

China's industrial firms reported stronger profit growth at the start of the second quarter, supported by rising energy prices and resilient overseas demand for technology products despite a broader economic slowdown.

Improved performance in the country's raw-materials and manufacturing sectors helped drive a 24.7% year-over-year increase in industrial profits in April, compared with a 15.8% rise in March, according to official data released Wednesday.

Pentagon Cuts Forces Earmarked for Europe in Event of Crisis

The Pentagon is substantially scaling back the forces it plans to send to Europe in a crisis, a fresh step by the Trump administration to shrink its military support for North Atlantic Treaty Organization allies.

Alexander Velez-Green, a Defense Department official, notified NATO allies of the planned cutbacks in a closed-door meeting last week at the alliance's headquarters in Brussels, current and former officials familiar with the matter said.

Canada Nearing Deal to Sell Germany Liquified Natural Gas

OTTAWA-Canada is expected to unveil a deal on Wednesday that secures the sale of liquefied natural gas from the country's west coast to Germany, with shipments expected to begin in the early 2030s, according to two people familiar with the matter.

If a deal is signed it will be a major win for Prime Minister Mark Carney, who has spent time since becoming leader last year traveling abroad trying to drum up investment in Canada and capitalize on the country's vast oil-and-gas reserves.

Write to gareth.mcpherson@wsj.com

TODAY IN CANADA

Earnings:

Bank Montreal 2Q

Bank Nova Sc. 2Q

Champion Iron 4Q

Coveo Sol. 4Q

EQB Inc 2Q

National Bank of Canada 2Q

Economic Indicators (ET):

Nothing major scheduled

Stocks to Watch:

Halmont Properties 1Q Net Income CAD 4.81M; 1Q Revenue CAD 8.93M

Nutrien Prices Offering of Aggregate of $1B of 5-Year, 10-Year Senior Notes

(MORE TO FOLLOW) Dow Jones Newswires

May 27, 2026 06:14 ET (10:14 GMT)