US Stocks End at Record Highs on Ceasefire Hopes; Semiconductor Shares Take Breather

Wall Street’s three major indexes all closed at record highs on May 27 as investors bet the US and Iran were nearing a ceasefire agreement and the Strait of Hormuz would reopen.

The Dow Jones Industrial Average rose 182.60 points, or 0.36%, to 50,644.28 on the New York Stock Exchange. The S&P 500 edged up 1.24 points, or 0.02%, to 7,520.36, while the Nasdaq Composite gained 18.55 points, or 0.07%, to 26,674.73.

The S&P 500 and Nasdaq traded lower for much of the session before trimming losses late and finishing slightly higher. The Dow set fresh records both intraday and at the close.

All three major indexes posted record closing highs on the same day for the first time in seven months, since Oct. 28, 2025.

Goldman Sachs lifted its year-end target for the S&P 500 to 8,000 from 7,600, citing upward revisions to US corporate earnings.

Micron Technology, which topped a $1 trillion market value a day earlier, climbed 3.64% to extend its rally. Other major chipmakers weakened, with AMD down 1.66%, Intel off 1.42% and Nvidia falling 1.05%.

Consumer and healthcare stocks outperformed. Procter & Gamble rose 3.17%, Home Depot gained 2.35%, Nike added 2.31% and UnitedHealth advanced 1.90%.

“A pause after such a large rally is not surprising,” Sean Clark, chief investment officer at Clark Capital Management Group, told Reuters. AI-related themes are driving gains, he added, but the broader market is also taking part in the rally.

Markets were also watching the April personal consumption expenditures price index due on May 28, as high oil prices linked to the closure of the Strait of Hormuz threatened to persist. The PCE price index is the inflation gauge the Federal Reserve uses to guide monetary policy.

Oil prices tumbled as expectations for a ceasefire agreement grew after Iran’s state media reported a draft proposal for negotiations. Brent crude futures settled 5.3% lower at $94.29 a barrel, while West Texas Intermediate crude futures fell 5.6% to $88.68. WTI closed below $90 a barrel for the first time since April 20.

CME Group’s FedWatch Tool showed the federal funds futures market pricing in a 37.4% chance of a 25-basis-point rate increase by the end of December. The probability of rates remaining unchanged rose to 51.2% from 48.2%.

The Cboe Volatility Index, or VIX, fell 0.72 point, or 4.23%, to 16.29.

Ko Jung-sam, Hankyung.com reporter, jsk@hankyung.com