Daily News – 22nd May ’26
Daily News
Dow Hits Record as Iran Nuclear Snag Clouds Peace Hopes; Oil Rebounds, Gold Steady Above $4,500
22 May 2026
Today in Brief
Asia-Pacific markets edged higher Friday as investors assessed U.S.-Iran diplomacy, though reports that Iran's Supreme Leader ordered enriched uranium to remain within the country complicated negotiations. Japan's Nikkei 225 rose 1.36% and the Topix added 0.55%; Japan's core inflation eased more than expected in April to its lowest since March 2022. The Dow closed at a record 50,285.66, up 276.31 points (0.55%), while the S&P 500 gained 0.17% to 7,445.72 and the Nasdaq added 0.09% to 26,293.10. WTI fell almost 2% to $96.35 and Brent dropped more than 2% to $102.58, though WTI climbed back toward $98 on Friday after the uranium stockpile reports. Gold held above $4,500, on track to finish the week little changed.
China's trade representative called for APEC cooperation amid post-Trump-Xi tensions. Trump postponed signing an AI executive order, citing concerns it could hinder U.S. leadership. India's RBI signalled it would not use rate hikes to defend the rupee. Kevin Warsh was sworn in as Fed Chair, succeeding Jerome Powell. JPMorgan sought to offload risk on $4 billion in private equity-linked loans. Estée Lauder ended merger talks with Puig, sending shares up over 10%. Lam Research detailed AI-driven chipmaking expansion plans. The Trump administration announced $2 billion in equity stakes across nine quantum computing firms, including IBM and GlobalFoundries.
Asia-Pacific markets trade higher as investors assess U.S.-Iran peace deal diplomacy
Asia-Pacific markets traded higher Friday as investors assessed U.S.-Iran diplomatic efforts at reaching a peace deal in the Middle East. Tehran intending to keep its enriched uranium stockpile within the country, according to a Reuters report, could complicate negotiations with Washington, as President Donald Trump has made dismantling Iran's nuclear program a central objective of his military action against Tehran. Japan's Nikkei 225 rose 1.36%, while the Topix added 0.55%. Japan's core inflation eased more than expected in April to its lowest level since March 2022, weakening the case for an early rate hike by the Bank of Japan.
Dow rises more than 270 points to close at a record as oil prices pull back
The Dow Jones Industrial Average rose to a record close Thursday as oil prices and Treasury yields were volatile, with traders hoping for a resolution to the Middle East conflict. The blue-chip index gained 276.31 points, or 0.55%, for a closing record of 50,285.66. The S&P 500 advanced 0.17% to 7,445.72, while the Nasdaq Composite increased 0.09% to end at 26,293.10. West Texas Intermediate futures declined almost 2% to close at $96.35 per barrel. Brent crude dropped more than 2% to close at $102.58 per barrel. Crude prices initially jumped after Reuters reported, citing sources, that Iran's supreme leader issued a directive to keep enriched uranium within the country — further complicating the outlook to a resolution to the U.S.-Iran war.
Gold hovered above $4,500 an ounce on Friday and was on track to finish the week little changed
Gold hovered above $4,500 an ounce on Friday and was on track to finish the week little changed, as conflicting signals surrounding U.S.-Iran peace negotiations kept investors cautious over inflation risks and the outlook for interest rates. Tehran stated that the latest U.S. proposal had partially bridged the gap between the two sides. However, reports that Iran's Supreme Leader ordered the country's enriched uranium stockpile to remain within its borders complicated negotiations, as dismantling Iran's nuclear program remains a key U.S. objective. Iran is also reportedly in talks with Oman on establishing a permanent toll system that would formalize its control over shipping traffic through the Strait of Hormuz, though President Donald Trump rejected the idea.
WTI crude futures climbed toward $98 per barrel on Friday
WTI crude futures climbed toward $98 per barrel on Friday after reports indicated that Iran's Supreme Leader ordered the country's enriched uranium reserves to remain inside Iran, complicating ongoing peace negotiations as dismantling Tehran's nuclear program remains a central U.S. demand. Iran is also reportedly working with Oman on a framework for a permanent toll system that would formalize its control over maritime traffic through the Strait of Hormuz. However, President Donald Trump rejected the proposal, insisting the waterway should remain open, free, and without toll charges. Despite Friday's gains, WTI futures were still down more than 3% for the week amid optimism that the conflicting parties could eventually reach an agreement.
China calls for APEC cooperation as commerce minister skips opening over 'urgent official business'
Li Chenggang, China's international trade representative, opened the Asia-Pacific Economic Cooperation trade ministers' meeting on Friday with a call for regional economies to send a strong message to the world in support of cooperation. Li said he was chairing the opening meeting in place of China's Commerce Minister Wang Wentao, who had urgent official business, according to a CNBC translation of his remarks in Chinese. The trade representative role is a full minister rank. Li also serves as China's vice commerce minister. The APEC trade ministers' meeting, set to conclude Saturday, comes about a week after U.S. President Donald Trump and Chinese President Xi Jinping met in Beijing.
Trump postpones AI executive order signing: 'I didn't like certain aspects'
President Donald Trump on Thursday said he postponed an upcoming signing ceremony for his administration's much-anticipated executive order on the artificial intelligence industry. The event, which was set for later Thursday afternoon, was delayed because he didn't like certain aspects of it, Trump told reporters in the Oval Office. The U.S. is ahead of China and the rest of the world on AI and he did not want to do anything that would get in the way of that lead, Trump said. He added that AI is causing tremendous good, and he was concerned that the executive order could have been a blocker. The order would empower the U.S. government to pre-evaluate AI models to identify security vulnerabilities, The New York Times reported Thursday, citing people working on the order.
India central bank not in favour of rate hikes to defend rupee, prioritises inflation, sources say
India's central bank does not see interest rate hikes as the best way to defend the embattled rupee, three sources said, a position at odds with markets, reinforcing that inflation — not the currency — will guide policy on borrowing costs. The Reserve Bank of India has other levers it has yet to deploy, according to sources familiar with the RBI's thinking, which Reuters reported earlier included options such as dollar deposit schemes for non-resident Indians and tax tweaks for debt investors. All options remain on the table and are under consideration in coordination with the government, one source added. The stance puts policymakers at odds with market bets for tightening, even as the rupee slides to record lows on an energy-price shock linked to the Iran conflict.
Trump will swear in Warsh on Friday to lead US Federal Reserve
U.S. President Donald Trump swore in Kevin Warsh as the chair of the Federal Reserve on Friday at the White House. Warsh was confirmed to the role in a near party-line vote on May 13, succeeding Jerome Powell as chair of the central bank, though Powell's separate term as a Fed governor extends through January 2028. Warsh, 56, will serve a four-year term as chair and a 14-year term as a Fed governor. Trump selected him as a bulwark against further rate hikes; Warsh has long expressed a desire to lower rates while slashing the Fed's balance sheet. Warsh was passed over for the role in 2017 during Trump's first term. A Fed governor from 2006 to 2011, he was the youngest member of the board at 35 when first appointed in the George W. Bush administration.
JPMorgan looks to offload exposure to $4 billion in private equity-linked loans, FT reports
JPMorgan is seeking to offload risk tied to more than $4 billion in loans to private equity funds, the Financial Times reported on Friday, citing people familiar with the matter. The lender is in talks with investors over a transaction that would allow it to transfer risk tied to net asset value loans backed by private equity fund assets. Investor sentiment toward private credit has weakened in recent months, as concerns mount over loosening lending standards and the potential for AI to disrupt the software sector — a key area of exposure for many funds. The Wall Street bank was working on a risk transfer that would allow it to retain the NAV loans on its balance sheet while shifting a portion of potential losses to investors, the FT added.
Estée Lauder ditches Puig deal, lifting shares as turnaround takes priority
U.S. cosmetics maker Estée Lauder and Spanish perfumery Puig ended merger talks that would have created a premium beauty giant better positioned to compete with industry leader L'Oréal. Estée shares rose over 10% in extended trading on Thursday as investors cheered the end of a potential deal that analysts had warned could add integration risk, stretch the company's balance sheet and distract management from its months-long turnaround plan. The merger talks, disclosed in March, would have formed a $40 billion luxury beauty group bringing together Estée brands such as Tom Ford, Clinique and MAC with Puig's brands including Carolina Herrera and Charlotte Tilbury. Estée shares had dropped 10% the day after the companies originally confirmed the talks.
Lam Research focused on adding AI to chipmaking tools as it eyes US expansion, CEO says
Lam Research is focused on adding sensing and AI capabilities to its semiconductor manufacturing tools to make them more productive as it plans expanded operations in Arizona and California, its chief executive told Reuters on Thursday. Shares of Lam, which supplies chipmakers such as Micron Technology and Taiwan Semiconductor Manufacturing Co, have risen more than 75% this year as huge demand for AI chips has spurred customers to buy more tools. Lam CEO Tim Archer said the company's strategic focus over the next two years would be to equip those tools with more sensors that generate data which can be analyzed by AI systems to spot problems and inefficiencies early.
US to invest $2 billion in IBM, other quantum computing firms
The Trump administration will take $2 billion in equity stakes across nine quantum-computing companies, including a new IBM venture, in a major push to secure U.S. leadership in the emerging technology and counter China. The move shows the growing prominence of quantum computing, where recent technological breakthroughs have deepened investor interest in its potential to speed up tasks ranging from drug discovery to financial modelling and cryptography. The U.S. Department of Commerce said on Thursday that IBM would receive $1 billion to set up a company to manufacture quantum chips, while contract chipmaker GlobalFoundries will get $375 million to build a U.S. factory producing components for different types of quantum machines.
