Premarket Market Movements 1. On Tuesday, May 26, U.S. stock index futures for the three major averages were all trading higher. At the time of writing, Dow futures were up 0.61%, S&P 500 futures were up 0.68%, and Nasdaq futures were up 1.02%. 2. At the time of writing, Germany's DAX index was down 0.53%, Britain's FTSE 100 was up 0.50%, France's CAC 40 was down 0.82%, and the Euro Stoxx 50 was down 0.76%. 3. At the time of writing, WTI crude was down 4.17% at $92.57 per barrel. Brent crude was up 2.73% at $95.97 per barrel.

Market News Brief U.S.-Iran Clashes Cloud Negotiation Outlook. Military actions by the U.S. in the Strait of Hormuz and subsequent responses from Iran have significantly dampened market expectations for a negotiated reopening of this critical waterway. The U.S. Central Command stated that U.S. forces had struck Iranian missile launch sites and vessels attempting to lay mines. A spokesperson described the action as defensive, aimed at "protecting our forces from threats posed by Iranian forces." Iran later responded. According to reports, the public relations department of Iran's Islamic Revolutionary Guard Corps stated on the 26th that it had shot down a U.S. MQ-9 Reaper drone in Iranian airspace over the Persian Gulf. Amidst rising regional tensions, Israel also signaled a tougher stance, stating it would intensify strikes against Hezbollah in Lebanon as U.S.-Iran talks progress. Iran explicitly stated that any peace agreement must include a condition to cease hostilities in Lebanon. Prior to this escalation, U.S. President Trump stated on Monday that negotiations with Iran on extending a ceasefire and easing restrictions in the Strait of Hormuz were "proceeding smoothly." U.S. Secretary of State Rubio said on Tuesday that talks with Iran might take "several more days" to finalize, tempering market expectations for an immediate end to the conflict.

JPMorgan Bets on 'AI Supercycle' to Reshape Productivity, Calls for S&P 500 to Surpass 9000. JPMorgan's latest research report suggests that, driven by the tech stock rally centered on AI computing power, the benchmark S&P 500 index could break through the seemingly distant 9000-point milestone within the next year. This target implies a gain of approximately 22% from current levels. Despite widespread concerns about U.S. inflationary pressures and rising energy costs linked to geopolitical risks from the Iran conflict, JPMorgan's analyst team believes the actual scale of the AI supercycle may exceed prior expectations and serve as the core engine for continued market gains. JPMorgan argues that if artificial intelligence can indeed significantly advance total factor productivity growth exponentially, then the valuation expansion of tech stocks will gain exceptionally solid fundamental support.

S&P 500 Earnings Growth Broadens Beyond the 'Magnificent Seven'. Earnings growth for the S&P 500 is spreading from the "Magnificent Seven" to a wider range of companies. Data from FactSet shows that the "Magnificent Seven" — Nvidia, Microsoft, Google, Amazon, Meta, Apple, and Tesla — saw Q1 earnings per share grow 63.2% year-over-year, the largest increase since Q2 2021. More notably for Wall Street, the remaining 493 companies in the S&P 500 also saw Q1 earnings grow 17.4% year-over-year, the fastest pace since Q4 2021. Overall, S&P 500 Q1 earnings grew by 28.4%. This data indicates that earnings growth is no longer reliant solely on tech giants.

Post-Earnings Season, U.S. Stocks Face the 'Midterm Election Curse'. U.S. stock traders are set to return after the Memorial Day holiday, having previously shown remarkable resilience amidst geopolitical risks. The S&P 500 closed higher on Friday, marking its eighth consecutive weekly gain, the longest winning streak since 2023. Despite persistent pressure from rising global bond yields, major indices continued to climb steadily. As June approaches, technical strategists are warning investors to be cautious of subsequent risks. Statistics from Dow Jones Market Data show that summers in midterm election years have historically been weak periods for U.S. stocks. The data indicates that during such years, the S&P 500 has on average declined by 2.8% between late April and late September. However, this year's market started differently, with the index up 3.7% so far in May.

GDPNow Predicts U.S. Q2 GDP Surge of 4.3%; Pantheon Cautions Against 'False Signal'. U.S. economists are increasingly questioning the reliability of the Atlanta Fed's closely watched GDPNow model. With very limited underlying data, the model predicts U.S. Q2 economic growth at an annualized rate of 4.3%, more than double the Q1 pace of 2.0%. However, independent macroeconomic research firm Pantheon advises not to be misled by a false signal, suggesting Q2 growth is more likely around 1.5%. Pantheon notes that the GDPNow forecast is based on "too little data to be credible" and warns that the model relies heavily on statistical extrapolation rather than solid economic data inputs. The firm states that the latest GDPNow estimate includes almost no hard data for May or June and lacks reliable information on volatile trade and inventory components—which can significantly alter the overall GDP reading.

Former Goldman Sachs Commodities Head: Gold Could First Drop to $4000, Then Charge Towards $10000. Veteran commodities strategist Jeffrey Currie suggests gold may face a short-term pullback as geopolitical tensions and slowing central bank buying momentum weigh on investor sentiment, but the long-term bullish case for gold remains solid. He stated, "Once an energy crisis hits growth, prompting central banks to turn dovish, the trading logic will reset, and I will go long again." Regarding gold's price trajectory, this commodities veteran expects the price may first retreat to around $4,000 per ounce, erasing gains since 2026, before making a charge towards the $10,000 per ounce mark.

Individual Stock News SpaceX IPO 'Halo Effect' Continues! U.S. Space Sector Soars Premarket. During the U.S. premarket trading session, the space sector rally ignited by SpaceX continued. At the time of writing, Momentus (MNTS.US) surged 62%, Redwire (RDW.US) rose 14%, MDA Space (MDA.US) gained 12%, Firefly Aerospace (FLY.US) advanced 9%, Voyager Technologies (VOYG.US) was up 6%, Intuitive Machines (LUNR.US) climbed 11%, York Space Systems (YSS.US) increased 10%, AST SpaceMobile (ASTS.US) rose 7%, and Rocket Lab (RKLB.US) gained 5%—major space-related stocks saw simultaneous significant jumps in premarket trading, extending the sector's surge since SpaceX filed its S-1 form on May 20.

Chip Stocks Gain Broadly Premarket. In Tuesday's U.S. premarket trading, at the time of writing, Micron Technology (MU.US) was up over 7%, AMD (AMD.US) rose over 3%, Qualcomm (QCOM.US) gained over 2%, Taiwan Semiconductor Manufacturing (TSM.US) advanced nearly 2%, while Intel (INTC.US) and Nvidia (NVDA.US) were both up over 1%.

Tesla (TSLA.US) Doubles Down on Solar: $250 Million Texas Factory Revealed, Targeting 100GW Goal. Tesla's next major energy move might not come from its automotive business, but from a massive solar manufacturing campus located outside Houston. Tesla is developing a large-scale solar manufacturing base within its Brookshire complex, which is also home to a Megapack battery factory under construction. Reports indicate the proposed project would cover nearly the entire solar manufacturing process—from crystal pulling and wafer slicing to photovoltaic cell production and final module assembly—forming a vertically integrated production facility with cleanroom-level manufacturing space, involving construction costs exceeding $250 million. If built as planned, this project would represent Tesla's clearest step yet towards CEO Elon Musk's goal of achieving "annual solar manufacturing capacity of 100 gigawatts."

Near €1 Billion Fine! Reports Suggest EU to Hit Google (GOOGL.US) with Strictest DMA Enforcement Yet. Reports indicate the European Commission is preparing to fine Google close to €1 billion (approximately 7.9 billion yuan) for violating the Digital Markets Act (DMA) by systematically favoring its own products and suppressing competitors in search results. If confirmed, this would be the largest fine issued since the DMA's full implementation in May 2024, and the EU's most stringent enforcement action to date against the "gatekeeper" of the global search market, following initial fines for Apple and Meta. The decision is reportedly nearing completion and is expected to be formally announced before the EU's summer recess.

Priced at €550,000: Ferrari (RACE.US) Launches First Pure Electric Luce, Betting 'Scarcity Model' Can Work in the Electric Era? Ferrari has unveiled its first all-electric vehicle, a five-seater priced at €550,000 (approximately $640,000), marking the sports car maker's break from its combustion-engine heritage. Ahead of the launch, Ferrari last year delivered long-term targets that disappointed investors and raised questions about how it would balance electric technology with internal combustion models that remain central to the brand. The Luce represents a significant test case: Ferrari must prove that an electric vehicle can fit its model of limited supply, high pricing, and emotional appeal while expanding the product line beyond traditional two- and four-seat sports cars. At the time of writing, Ferrari was down 3% in Tuesday's U.S. premarket trading.

JOYY (JOYY.US) Q1 Revenue Hits Highest YoY Growth in Recent Years; Plans $1.5 Billion Return to Shareholders Over Next 3 Years. JOYY released its Q1 2026 financial results. For the quarter, revenue reached $555.7 million, a year-over-year increase of 12.4%, marking the highest growth rate in recent years. Non-GAAP operating profit and EBITDA were $38 million and $45.7 million, respectively, up 22.5% and 13.2% year-over-year. Concurrently, JOYY Group upgraded its shareholder return plan. From 2026 to 2028, the group may repurchase $600 million worth of shares and distribute $900 million in dividends, totaling a combined $1.5 billion over three years. At the time of writing, JOYY surged nearly 12% in Tuesday's U.S. premarket trading.

Important Economic Data and Event Schedule Beijing Time 22:00: U.S. May Conference Board Consumer Confidence Index

Earnings Preview Wednesday Morning: Agora (API.US), Sociedad Química y Minera de Chile (SQM.US) Wednesday Pre-Market: Pinduoduo (PDD.US), Kingsoft Cloud (KC.US)