Stock Market Today, May 26: Soaring Tech Stocks Push S&P 500 and Nasdaq to New Highs
The S&P 500 (SNPINDEX:^GSPC) rose 0.61% to 7,519.12 to notch fresh intraday and closing records, and the Nasdaq Composite (NASDAQINDEX:^IXIC) climbed 1.19% to 26,656.18 on a powerful chip-led surge. The Dow Jones Industrial Average (DJINDICES:^DJI) slipped 0.23% to 50,461.68 as healthcare and energy stocks dragged.
Market movers
Leading the advance, Micron Technology jumped over 19% and topped a $1 trillion valuation during the day after an aggressive UBS upgrade. Other AI-linked semiconductor stocks, such as Advanced Micro Devices and Qualcomm rose, alongside mega-caps like Alphabet.
Dow healthcare components, including UnitedHealth and Merck, declined, contributing to the blue chip index’s underperformance. Space stocks such as Rocket Lab and Firefly Aerospace surged.
What this means for investors
The S&P 500 and Nasdaq set fresh records today as semiconductor and artificial intelligence (AI) stocks rallied. Inflation fears weighed on consumer defensive stocks as a Conference Board survey showed two-thirds of Americans are cutting back on spending due to high food and gas costs.
Oil prices and Treasury yields dropped on growing optimism on Wall Street that negotiations between the U.S. and Iran may soon end the conflict and reopen the Strait of Hormuz. However, it is early days, and the oil traffic disruptions mean the market is under increasing strain.
For investors, there’s a lot of noise in the market right now, with major indexes rallying despite fears of rising tech concentration risks, inflation, and bond-market jitters. To manage uncertainty, stay focused on company fundamentals and maintain a diversified portfolio that can weather short-term volatility.
Should you buy stock in S&P 500 Index right now?
Before you buy stock in S&P 500 Index, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $477,813!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,320,088!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of May 26, 2026.
Emma Newbery has positions in Amazon. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Merck, Micron Technology, Qualcomm, and Rocket Lab. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.
Recommended Articles
