Daily Market Report – May 28, 2026

The international stock markets closed mixed on Thursday. While the US technology sector remained near new highs, European markets slightly declined. The DAX (DAX) lost 0.34% to 25,092 points. The market was weighed down by ongoing uncertainty regarding potential negotiations in the Iran conflict, rising energy prices, and the expectation of important US inflation data on Friday.

Investors are now focused on the US PCE Price Index for April, which will be released on Friday at 8:30 AM ET. The PCE Index is considered the most important measure of inflation by the Federal Reserve. Following recently robust US economic data, investors are particularly attentive to whether price pressures continue to solidify. The release could be crucial in determining whether the markets further expand their expectations for later rate cuts by the Fed. At the same time, investors are closely monitoring the development of long-term US yields, after the yield on 30-year US Treasury bonds (US30Y) recently temporarily rose to its highest level since the financial crisis.

Among the strongest individual stocks in the German market was Infineon (IFX), which rose by 4.4% and was clearly the day's winner in the DAX. Investors continue to bet on persistently high demand for AI semiconductors, data centers, and power chips. The entire semiconductor industry benefited internationally from the expectation that investments in artificial intelligence will continue to rise despite high valuations. In contrast, defensive stocks performed weaker. RWE (RWE) lost around 1.3%, while Brenntag (BNR) was also among the weakest DAX stocks.

The mood on Wall Street remained robust. The S&P 500 (SPX) and the Nasdaq-100 (NDX) stayed close to their record levels. The strong earnings performance of major technology companies and the ongoing AI boom continue to support the US market. Semiconductor stocks like NVIDIA (NVDA) and Micron (MU) were once again in the spotlight. Micron continued to benefit from the high demand for HBM memory ("High Bandwidth Memory"), which is needed for AI applications.

The commodity markets remained volatile. Brent Crude Oil (UKOIL) continued to trade significantly above the levels from the beginning of the month. Any new reports regarding potential ceasefires or escalations in the Middle East have recently led to strong fluctuations in oil and stocks. The high oil price increases inflationary pressure worldwide and particularly burdens Europe more than the USA, as the European economy remains significantly more energy-dependent.

On the foreign exchange market, the US Dollar Index (DXY) remained firm. The Euro to US Dollar (EURUSD) remained under pressure as investors continued to shift capital into dollar-denominated assets in light of high US yields and robust US economic data. At the same time, concerns are growing in the market that persistently higher energy prices could more significantly hinder the European economy.