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As on : 28-May-2026

Market Commentary - Foreign Markets
28-May-2026 10:19

Wall Street Hits Fresh Records as Oil Prices Tumble on U.S.-Iran Ceasefire hopes

The S&P 500 edged up by less than 0.1% and added to its all-time high set the day before. The Dow Jones Industrial Average climbed 182 points (0.4%) and the Nasdaq composite gained 0.1% as both indexes also set records.

Fuel-heavy stocks surged as falling oil prices boosted profit outlooks. Norwegian Cruise Line Holdings climbed 6.1%, United Airlines rallied 6.3%, and Delta Air Lines rose 3%, hitting an all-time high. Hopes that lower energy costs would ease pressure on their bottom lines drove the gains.

Brent crude dropped 4.6% to $92.25 per barrel while U.S. benchmark crude fell 5.5% to $88.68 ' its lowest since mid-April ' after a U.S.-Iran ceasefire held and prospects grew for reopening the Strait of Hormuz to oil tankers. Despite the inflation and uncertainty that high oil prices have caused, stocks have managed to reach record highs, buoyed by stronger-than-expected corporate profits at the start of 2026 and an optimistic earnings outlook ahead.

Bath & Body Works rallied 9.7% and Abercrombie & Fitch climbed 8.9% after both reported bigger profit for the latest quarter than analysts expected. That's even as U.S. consumers continue to say they're feeling discouraged about the economy and inflation. Lululemon Athletica rose 2.9% after reaching a deal with its founder, Chip Wilson, where it will add a former chief marketing officer of ESPN and a former co-CEO of On to its board of directors. Dick's Sporting Goods dropped 6% despite delivering a profit for the latest quarter that edged past expectations. Oil-and-gas stocks also sank, hurt by the dropping prices for crude. Exxon Mobil fell 1.3% and Chevron slipped 1.3%. Halliburton dropped 3.6% to bring its gain for the year so far back toward 40%.

In stock markets abroad, indexes were mixed across Europe and Asia. South Korea's Kospi was one of the world's best performers and jumped 2.3% after SK Hynix, which is a big beneficiary of the AI boom, soared 9.3%.

In the bond market, Treasury yields eased after falling oil prices took pressure off inflation. The yield on the 10-year Treasury slipped to 4.48% from 4.50% late Tuesday and from 4.67% roughly a week ago.

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