Market Summary On May 22, U.S. Treasury yields and oil prices declined, while the Dow Jones Industrial Average reached a new record closing high. The top 20 U.S. stocks by trading volume on May 22 included Walmart, which warned that rising fuel costs are squeezing its profit margins. Popular U.S.-listed Chinese stocks showed mixed performance: Himax Technologies rose 6.25%, while KE Holdings fell 6.47%. Crude oil prices fell for a third consecutive day, with traders closely monitoring developments in U.S.-Iran negotiations. Commodities Overview: Oil extended its losing streak, gold prices stabilized, and London copper prices moved lower. European stock markets edged higher as traders tracked Middle East developments and the ongoing narrative around artificial intelligence.
Macro Developments Former U.S. President Donald Trump reiterated a threat demanding Iran surrender its enriched uranium, suggesting it could be destroyed if obtained. U.S.-Iran talks show slight progress, though issues surrounding uranium and Strait of Hormuz transit fees remain points of contention. Iran's state television reported that the country's president stated Iran will not make concessions in negotiations. Iran's Foreign Ministry indicated the current focus of talks is on ending the war on all fronts. A Pakistani official stated that U.S.-Iran negotiations are moving in the right direction. Russia's Foreign Minister spoke with the Palestinian Deputy President, discussing the situation in Gaza. Donald Trump stated the U.S. desires the Strait of Hormuz to remain open and free of tolls. The U.S. Ambassador to Denmark stated Trump has ruled out the use of military force regarding Greenland. Trump announced the U.S. will deploy an additional 5,000 troops to Poland. The new U.S. consulate in Greenland opened amid local protests. The U.S. military reported that its blockade of an Iranian port has caused 94 commercial vessels to alter course. The U.S. Secretary of State noted progress in U.S.-Iran talks but cautioned that a final agreement is not guaranteed. Turkey's Finance Minister will convene a Financial Stability Committee meeting. Five nations, including Saudi Arabia and the UAE, have requested commercial vessels avoid a specific Strait of Hormuz route designated by Iran. Trump postponed the signing of an executive order on artificial intelligence. Poland has declared Israel's National Security Minister a "persona non grata." Turkey sold $6 billion in foreign exchange to stabilize the lira, following market turbulence linked to a court ruling involving an opposition party.
Corporate News OpenAI's "fatal" flaw is exposed ahead of its IPO, with Q1 revenue of $5.7 billion but a -122% profit margin. SpaceX faces a crucial pre-IPO test with the imminent first flight of its Starship V3. IBM secured U.S. government funding and will invest $2 billion in a quantum computing chip project. NVIDIA's CFO stated combined revenue from its standalone CPUs and CPUs in its superchips is projected to reach $20 billion. Microsoft and EY announced a joint investment exceeding $1 billion to help clients launch major AI projects. Oracle launched its Fusion Data Intelligence platform to accelerate AI-driven enterprise decision-making. Polymarket traders are betting that SpaceX's market cap will exceed $2 trillion on its first day of trading. IMAX shares surged in after-hours trading following media reports the company is considering a sale. Estée Lauder and Puig ended merger talks without reaching an agreement. SA Analyst Rating Changes: Google received an upgrade, Target was downgraded, and ZIM and Nebius received new coverage. Rising fuel costs eroded profits, leading Walmart to issue Q2 guidance that fell short of expectations. StepStone announced its UFEC reached $40 billion, and its board declared a special dividend of $0.55. Cosmos Health reported Q1 revenue grew 31% to $17.93 million, while its net loss widened. Lightspeed Commerce's stock fell after reporting earnings that missed estimates and providing conservative full-year guidance. Barnwell Industries reported a narrowed Q2 net loss of $0.09 per share, citing initial success from cost-cutting measures. Kawasaki Heavy Industries is partnering with NVIDIA to establish a robotics R&D center in Silicon Valley. Ralph Lauren forecasts FY2027 revenue growth of 4%-5%, with operating margin expected to expand by an additional 40-60 basis points. Computer Modelling Group reported a 17% increase in Q4 earnings, while total revenue remained flat. Spotify's stock rose on news of an AI music licensing deal and its financial guidance announcement. Vipshop's Q2 revenue guidance missed expectations; a REIT listing contributed a one-time gain of 5.3 billion yuan. Lowe's is positioned to benefit from growth in aging housing stock and professional renovation demand. Arctic barge transport becomes key for Agnico Eagle to control costs at its Hope Bay gold mine. Ōura, maker of a smart ring, has confidentially filed for a U.S. IPO. JPMorgan Chase is fully deploying AI tools across its global investment bank.
Commentary Rpidan Energy Group warned that a closure of the Strait of Hormuz lasting until August could trigger an economic recession comparable to 2008. The Richmond Fed President cautioned that frequent supply shocks are testing the anchoring of inflation expectations. The Chicago Fed President stated that rising inflation is currently the top concern. PIMCO's Chief Investment Officer stated that if inflation expectations continue to rise, the Federal Reserve will be compelled to act. UBS predicts a recovery in U.S. non-residential construction in the second half of the year and is bullish on construction stocks like Caterpillar. Late Trading Session: Oil's rally paused, U.S. stocks advanced, with the Dow up 0.7%. An AAII survey showed bearish sentiment among individual U.S. stock investors rose to 43.6%, while bullish sentiment stood at just 31.7%. MicroStrategy's Chairman stated that asset tokenization will help investors flexibly select income-generating products.
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