The major U.S. index futures are currently pointing to a higher open on Wednesday, with stocks likely to see further upside following the strength seen in the previous session.
Technology stocks may help lead the way higher once again, as reflected by the 0.8 percent advance by the tech-heavy Nasdaq 100 futures.
Shares of Micron Technology (MU) are surging by 7.6 percent in pre-market trading after soaring by 19.3 percent on Tuesday following a substantial price target increase by UBS.
An extended slump by the price of crude oil may also generate early buying interest, with U.S. crude oil futures plummeting by 6 percent amid persistent optimism about a U.S.-Iran peace deal.
"Brent crude oil prices remain below $100 per barrel - a good barometer of how talks between Tehran and Washington are perceived to be progressing," said AJ Bell investment director Russ Mould.
He added, "The hope will be that this is finally the week when a real breakthrough is achieved, but should negotiations fail then we could see market patience wear thin."
However, traders may be somewhat reluctant to make significant moves ahead of the release of key U.S. economic data on Thursday, including the Federal Reserve's preferred readings on consumer price inflation.
With technology stocks showing a substantial move to the upside, the tech-heavy Nasdaq surged to a new record closing high on Tuesday. The S&P 500 also advanced to a new record closing high, while the narrower Dow showed a modest move to the downside.
The Dow dipped 118.02 points or 0.2 percent to 50,461.68, but the S&P 500 climbed 45.65 points or 0.6 percent to 7,519.12 and the Nasdaq shot up 312.21 points or 1.2 percent to 26,656.18.
The jump by the tech-heavy Nasdaq came amid a sharp increase by shares of Micron Technology (MU), with the chipmaker soaring by 19.3 percent.
Micron surged after UBS increased its price target on the company's stock to $1,625, which would reflect a more than 100 percent spike compared to its closing price last Friday.
With Micron leading the way higher, semiconductor stocks showed a substantial move to the upside, driving the Philadelphia Semiconductor Index up by 5.5 percent to a record closing high.
Considerable strength was also visible among airline stocks, with the NYSE Arca Airline Index soaring by 4 percent to its best intraday closing in almost three months.
Gold, steel and networking stocks also saw notable strength, while energy stocks came under pressure amid a steep drop by the price of crude oil.
U.S. crude oil futures plunged by nearly 3 percent amid persistent optimism about an end to the U.S. war with Iran. President Donald Trump said in a post on Truth Social on Monday that negotiations with Iran "are proceeding nicely!"
Traders seemingly shrugged off news the U.S. military launched what it described as "self-defense" strikes in southern Iran, targeting missile sites and boats near the Strait of Hormuz.
In U.S. economic news, a report released by the Conference Board showed a modest deterioration in consumer confidence in the month of May.
The Conference Board said its consumer confidence index dipped to 93.1 in May from an upwardly revised 93.8 in April.
Economists had expected the consumer confidence index to edge down to 92.0 from the 92.8 originally reported for the previous month.
Commodity, Currency Markets
Crude oil futures are plummeting $5.82 to $88.07 a barrel after plunging $2.71 to $93.89 a barrel on Tuesday. Meanwhile, an ounce of gold is trading at $4,451.20, down $51.10 compared to the previous session's close of $4,502.30. On Tuesday, gold fell $20.90.
On the currency front, the U.S. dollar is trading at 159.34 yen compared to the 159.29 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1657 compared to yesterday's $1.1628.
Asia
Asian stocks ended mixed on Wednesday, with Chinese and Hong Kong markets declining after China punished three brokerages for offering mainland investors access to overseas stocks without licenses.
Positive sentiment prevailed elsewhere across Asia amid a surge in technology stocks and easing geopolitical tensions.
The Japanese yen weakened beyond 159 per dollar after Bank of Japan Governor Kazuo Ueda warned that central banks should not assess oil price movements in isolation.
The dollar index was firm and gold dipped below $4,500 on ounce ahead of Thursday's U.S. PCE data, expected to show another month of elevated price pressures.
Brent crude futures fell more than 2 percent below $98 a barrel as U.S.-Iran talks continued despite new American attacks on missile sites and mine-laying ships in the Strait of Hormuz.
As the Middle East conflict appeared to move toward a resolution, U.S. Secretary of State Marco Rubio cautioned that any accord would likely take a few days to finalize.
China's Shanghai Composite Index slumped 1.3 percent to 4,093.73 and Hong Kong's Hang Seng Index dropped 1.1 percent to 25,328.23 amid efforts by China to tighten control on overseas stock trading.
Japanese markets gave up early gains to end little changed. The Nikkei 225 Index reached a new high at 66,428 on expectations surrounding AI before closing marginally higher at 64,999.41. The broader Topix Index ended 0.5 percent lower at 3,918.01.
Seoul stocks extended gains for a fourth consecutive session and scaled a new peak, lifted by surging chip and AI-related stocks.
The Kospi Index closed 2.3 percent higher at 8,228.70, after having surpassed the 8,450-point level in early trading. Samsung Electronics climbed 2.7 percent and SK Hynix soared 9.3 percent.
Australian markets advanced after data showed consumer price inflation slowed in April following a temporary fuel tax cut. The softer print pushed traders toward a June hold for the Reserve Bank of Australia.
The benchmark S&P/ASX 200 Index climbed 0.7 percent to 8,717.70, led by rate-sensitive shares. The broader All Ordinaries Index settled 0.7 percent higher at 8,945.20.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index rallied 1.2 percent to 13,227.81, hitting a nearly three-week high after the country's central bank kept interest rates unchanged.
Europe
European stocks have moved mostly higher on Wednesday despite heightened inflation concerns and expectations that major central banks could raise borrowing costs soon.
In geopolitical news, media reports suggest that the release of frozen Iranian assets has emerged as the main sticking point in talks between Iran and the United States.
The French CAC 40 Index is up by 1 percent, the German DAX Index is up by 0.6 percent and the U.K.'s FTSE 100 Index is up by 0.2 percent.
Automakers Volkswagen, Stellantis and Renault have rallied after data showed European car sales climbed for the third consecutive month in April, helped by strong demand for electric and hybrid vehicles.
Pets At Home shares have also surged. After reporting a steep fall in annual underlying pretax profit, the U.K. pet care retailer said its retail sales returned to growth in the fourth quarter.
Volvo Car shares have also soared. The Swedish automaker said it has received U.S. government authorization to continue selling vehicles despite new regulations barring Chinese autos.
Dulux paint maker Akzo Nobel has also spiked after rejecting a joint takeover offer from rivals Nippon Paint and Sherwin-Williams.
Meanwhile, Ango-Swedish drug maker AstraZeneca has fallen. The U.S. FDA has informed the company that it needs more time to review additional data and render its decision on the oral selective oestrogen receptor degrader (SERD) camizestrant.
U.S. Economic News
The Treasury Department is scheduled to announce the results of this month's auction of $70 billion worth of five-year notes at 1 pm ET.
At 3:55 pm ET, Federal Reserve Governor Lisa Cook is due to speak on "AI, the Economy, and the Financial System" before the Stanford Institute for Economic Policy Research Policy Forum.
Federal Reserve Vice Chair Philip Jefferson is scheduled to participate in "Fireside Chat: Monetary Policy and Supply Shocks" before the 2026 Monetary Policy from New Perspectives Conference at 8 pm ET.
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May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.