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May 26, 2026 · Evening edition
Global equity markets experienced a risk-on tone, with U.S. stocks rising significantly to catch up with gains in other world markets, following comments from U.S. President Donald Trump indicating that negotiations with Iran were 'proceeding nicely' towards an agreement. This optimism, despite U.S. military self-defense strikes in southern Iran, drove up the S&P 500, Dow Jones Industrial Average, and Nasdaq composite, all nearing or setting new all-time highs. Oil prices showed mixed reactions; Brent crude rose, recovering some of its previous plunge, while U.S. crude declined. The ongoing conflict and its impact on the Strait of Hormuz continue to influence energy markets and global inflation, though hopes for a resolution buoyed stocks of companies with large fuel costs.
Global markets moved in a risk-on direction on May 26, as optimism over U.S.-Iran negotiations outweighed concern about continuing regional military strikes and their implications for energy prices.
U.S. equities rose sharply, catching up with gains already seen in overseas markets, after U.S. President Donald Trump said negotiations with Iran were “proceeding nicely” toward an agreement. The improved tone pushed the S&P 500, Dow Jones Industrial Average and Nasdaq composite toward, or in some cases to, record territory, with investors treating the prospect of a diplomatic breakthrough as a reason to rebuild exposure to risk assets.
The rally came despite U.S. military self-defense strikes in southern Iran and persistent uncertainty around the broader conflict. Energy markets remained sensitive to the potential effect on the Strait of Hormuz, a key channel for global oil flows. Brent crude recovered some of its earlier plunge, while U.S. crude declined, leaving oil prices mixed. The prospect of lower or more stable fuel costs helped support shares of companies with large energy expenses, even as the conflict continued to pose a risk to global inflation.
That inflation concern was visible in U.S. household sentiment data. The Conference Board said its Consumer Confidence Index slipped 0.7 points to 93.1 in May, after an upwardly revised 93.8 in April. Its Present Situation Index also retreated, while the Expectations Index edged higher. Consumers reported cutting back overall spending because of rising prices, with many delaying expensive purchases, underscoring how price shocks remain a constraint even as financial markets respond positively to diplomatic signals.
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Beyond the United States, the African Development Bank Group projected that African economies would grow 4.2% in 2026, a slight moderation from 4.4% in 2025. The bank said the outlook reflected resilience despite heightened geopolitical tensions, tighter global financial conditions and supply chain disruptions. Still, it projected inflation across the continent at 10.4% in 2026, highlighting the macroeconomic pressure that elevated prices continue to place on growth prospects.
Crypto markets showed a more cautious response to the same geopolitical backdrop. Global crypto investment products recorded $1.47 billion in outflows last week, the second consecutive week of withdrawals and the third-largest weekly outflow of 2026, according to reporting on CoinShares data. Bitcoin products accounted for $1.32 billion of the redemptions, their worst weekly showing of the year, with the selling linked to Iran-related risk-off sentiment across regions.
Taken together, the day’s developments showed investors balancing hopes for a negotiated easing of Middle East tensions against the continuing economic costs of uncertainty. Equities embraced the possibility of de-escalation, but consumer confidence, inflation projections and crypto outflows all pointed to a global economy still exposed to price pressures, tighter financial conditions and geopolitical risk.
Global equity markets moved higher on May 26 as investors responded to signs of progress in U.S.-Iran negotiations, even as military tensions in the region continued to unsettle energy markets.
Read full articleU.S. consumer confidence slipped slightly in May, with households continuing to report pressure from rising prices and cutting back on spending.
Read full articleAfrica’s economies are projected to grow by 4.2% in 2026, according to the 2026 African Economic Outlook released by the African Development Bank Group.
Read full articleGlobal cryptocurrency investment products recorded $1.47 billion in outflows last week, marking the second consecutive week of withdrawals and the third-largest weekly outflow of 2026.
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