Prime Daily: 27 May 2026

Semiconductors Surge, Yields Retreat

The S&P 500 and Nasdaq closed at all-time highs on Tuesday, led by a historic surge in semiconductor stocks. Micron Technology jumped 19% on AI optimism, pushing its market capitalisation past $1 trillion. The Nasdaq 100 also hit a record, while the Dow Jones edged down roughly 0.2%.

NVIDIA reported blockbuster quarterly earnings, with CEO Jensen Huang projecting the company could capture $35 billion for every $50 billion in AI infrastructure spending. Despite strong results, shares traded at $214.87 below the 52-week high of $236.54 with BofA noting the stock sits at just 17.5x 2027 earnings, well below its five-year average.

Oil prices showed mixed movement as investors weighed U.S. strikes on Iranian vessels against positive rhetoric regarding potential peace negotiations. These geopolitical developments remain central to market sentiment as they directly impact global inflation pressures.

U.S. Treasury yields retreated following the Memorial Day holiday as investors reacted to potential progress in negotiations to end the war with Iran. The 10-year Treasury yield dropped more than 8 basis points to settle at 4.489% as markets weighed the prospect of a deal that could reopen the critical Strait of Hormuz.

Asia-Pacific markets rose on Wednesday, with Japan and South Korea’s benchmark indices hitting new highs as investors assessed recent U.S. military action in Iran, the fragile state of the Washington-Tehran ceasefire and optimism that a deal could still be reached.

Shares of SK Hynix jumped as much as 11% on Wednesday, lifting the South Korean chipmaker’s market capitalisation above $1 trillion as investors continued to pile into artificial intelligence-linked semiconductor stocks.

China’s industrial profits in April surged by 24.7% from a year earlier, according to official data released Wednesday, marking the fastest growth since November 2023. The increase accelerated from a 15.8% rise in March.

Indian rupee snapped its three-day winning streak, with a sharp 45-paise depreciation. The local currency buckled under heavy pressure, driven by a weakening of the Asian currency basket, a shift toward global risk aversion, and a spike in crude oil prices following US military strikes.

From Nifty, the earlier breakout zone of 23,800–23,850 is expected to act as immediate support, followed by 23,600. On the upside, 24,100 remains a key near-term resistance level.

Indian markets are poised to open flat to mildly negative, tracking subdued global cues. The monthly expiry of Sensex derivatives is expected to drive volatility in today’s session. With markets closed tomorrow for a public holiday, traders may look to reduce their positions ahead of the break.