US-Iran Peace MOU Nears as S&P 500, Dow, Nasdaq Close at Records

All three major U.S. stock indexes closed at record highs on May 28 after a report said the United States and Iran had effectively wrapped up negotiations on a memorandum of understanding to end the war, leaving only President Donald Trump’s approval.

At the New York Stock Exchange, the Dow Jones Industrial Average rose 24.69 points, or 0.05%, to 50,668.97. The S&P 500 gained 43.27 points, or 0.58%, to 7,563.63, while the Nasdaq Composite climbed 242.73 points, or 0.91%, to 26,917.47. All three indexes set fresh records.

Axios reported that the United States and Iran had reached a tentative agreement on a memorandum of understanding that would extend a 60-day ceasefire and resume negotiations over Iran’s nuclear program. The agreement is awaiting Trump’s approval, the report said.

International oil prices ended mixed as news of the peace talks supported risk appetite. Brent futures fell 0.6% to settle at $93.71 a barrel, while West Texas Intermediate futures rose 0.3% to $88.90 a barrel.

Still, the recent rise in oil prices helped push the April personal consumption expenditures price index up 3.8% from a year earlier. That was the fastest annual increase since May 2023, when the gain was 4.0%. On a monthly basis, the index rose 0.4%.

AI-related technology shares led the rally. Snowflake surged 36.48% after raising its annual revenue forecast and announcing a long-term contract with Amazon Web Services. Palantir jumped 8.17% and Super Micro Computer gained 8.15%. Semiconductor stocks also rose, with SanDisk up 3.25%, AMD up 4.55%, Marvell up 3.09% and Qualcomm up 4.24%.

Kim Yeon-ji, Hankyung.com reporter, kongzi@hankyung.com