Morning Brew May 27 2026

Good morning.

Micron is up 19%, lifting its market value above $1 trillion for the first time after UBS raised its price target on the stock to $1,625 from $535, now the highest target on the Street.

In equities, the Dow closed down 0.25%, while the S&P 500 gained 0.6% and the Nasdaq rose 1.2%. Trading volume reached 18.85 billion shares, compared with an average of 18.71 billion. Asian markets are firmer, helped further by the end of the labor dispute at Samsung, Koreas Kospi was up more than 4%. As profits surge on the back of the AI boom, Samsung has agreed to allocate 10.5% of its semiconductor operating profit to special bonuses. The Nikkei is also trading near its highs despite a very hawkish inflation print. Nvidia, meanwhile, announced plans to invest around $150 billion per year in Taiwan.

Bond yields are lower, with the US 10-year at 4.47%, Europe below 3%, and the UK at 4.87%.

 The USD Index is trading at 99.10, EURUSD at 1.1640, GBPUSD at 1.3450, and USDJPY at 159.30. Gold and silver are weaker this morning at 4,505 and 76.20. Bitcoin is lacking inspiration at 75k June Gold and Silver futures are expiring this week, that could cause some moves.

The negotiations around an extension of the ceasefire between the US and Iran remain as unclear as the broader situation itself, with the clearest signal coming from Marco Rubio, who said that an agreement is likely still days away.

 There is little on today’s agenda that is likely to fundamentally shift markets, so earnings and the Iran negotiations will probably remain the main drivers. New highs in equities could renew optimism, and it is worth keeping an eye on a possible rotation from precious metals into technology stocks. Trade carefully.

Dorian Anglada wrote on what to expect from the new Fed Chair:

 Kevin Warsh leading the Fed: what it means for your investments

• Kevin Warsh aims to break away from the ultra-protective Fed era: less intervention, reduced communication, and greater reliance on market discipline.
• Markets could become more volatile, particularly in bonds and equities, as investors may no longer rely as heavily on the Federal Reserve “safety net.”
• Warsh places strong emphasis on artificial intelligence and productivity gains as a potential offset to inflationary pressures without undermining U.S. growth.
• From an investment perspective, this regime shift may be associated with a greater focus on financially solid companies and shorter-duration exposures, alongside more active risk management.

Wednesday, May 27

US Richmond Fed Manufacturing Index
Dicks, Marvell, Salesforce, Snowflake

Thursday, May 28
EU Consumer Sentiment, US Personal Income & Spending, Durable Goods Orders, GDP, New Home Sales
Best Buy, Kohl's, Dell, Costco

Friday, May 29
Japan CPI, Swiss KOF, European CPIs, US Chicago PMI

Monday, June 1
US ISM Manufacturing PMI, Construction Spending

Tuesday, June 2
EU Inflation, US JOLTS Job Openings