Morning Brew May 22 2026

Good morning

As we head into the long Pentecost weekend, hopes for the Iran talks are boosting sentiment. While the discussions focus on Tehran's uranium stockpile and controls on the Strait of Hormuz, U.S. Secretary of State Marco Rubio said there had been "some good signs" in the negotiations.

Quite an interesting development is that inflation numbers are high across the board but below analysts' fears. This is true for the latest figures from the US, Canada, the UK, as well as Japan—while the EU met expectations.

Wall Street kept its record-setting pace on Thursday, with the Dow climbing 276 points (+0.6%) to close at an all-time high of 50,285.66. The S&P 500 nudged up 0.2% and the Nasdaq Composite added 0.1%.

Both the Nasdaq 100 and the S&P 500 are within reach of closing the week at all-time highs, which would be a strong bullish signal—even if it seems at odds with the broader sentiment among traders.

Quantum computing stocks rocketed higher after the U.S. announced $2 billion in grants for nine companies in the sector. IBM scored the biggest slice—$1 billion from the Commerce Department—sending its shares surging 12%.

Nvidia slipped 1.8% despite another revenue beat and upbeat guidance, as investors took a more cautious view after the recent AI-fueled rally.

Ross Stores jumped 6.8% after hours by topping Q1 sales and earnings estimates ($6.01B sales, $2.02 EPS). Meanwhile, Walmart shares tumbled as much as 6.2% intraday after its Q2 EPS guidance missed the mark.

European stocks were mixed as investors kept a close eye on Middle East diplomacy and oil prices. QinetiQ and Investec led the gainers after beating earnings expectations, while Naturgy hit a two-year peak after back-to-back upgrades. Airbus nosedived 4.3%, dragging the DAX down 0.5% to 24,606.77. The FTSE 100 climbed 0.11%, notching its fourth straight win. Turkish stocks? Down 6%, tripping a circuit breaker after political turmoil.

Oil is lower at 97.30 and 104.20.

Gold and silver are friendly at 4520 and 76.50. The technical picture has not changed, with gold stuck between the 200-day MA at 4370 and the 50-day MA at 4670.

The USD Index is stuck near 99.20. EURUSD is 1.1615, GBPUSD is 1.3430, and USDJPY is 159.05. USDJPY is right on the 50-day moving average.

Samsung is splashing out an estimated 40 trillion won in chip staff bonuses—averaging about $340,000 per employee—thanks to a 10-year profit-sharing pact with unions, as the AI memory boom heats up the talent war with SK Hynix. This averts the risk of a strike turning into a wrench in the works,

Nio’s Q1 2026 net loss shrank to 332.1 million yuan, a major improvement from 6.75 billion a year ago, as revenue more than doubled to 25.5 billion on nearly 100% higher vehicle deliveries.

JPMorgan CEO Jamie Dimon warned that interest rates may climb much further, stating they could be much higher than current levels, as the world may have gone from a saving glut to not enough savings.

With little on the agenda today, sentiment around Iran is likely to be key. One important development could be the formal swearing-in of Kevin Warsh as Fed Chairman and any public statement he may make. There are so far no scheduled speeches ahead of the next FOMC meeting in June, but that might not hold true—how independent will he be?

As usual on a Friday, trade carefully and expect bouts of volatility.

Friday, May 22 Japan CPI, Germany GDP & IFO, UK Retail Sales, Canada Retail Sales

Monday, May 25

Pentecost

Tuesday, May 26

Sweden CPI, US Consumer Confidence