The S&P 500 climbed as high as 7,539.8 in intraday trade, setting another record.

On May 26, local time, Cryptopolitan, a blockchain outlet, reported that strength in technology shares led the gains, raising the chances the S&P 500 could extend its rise to a ninth straight week.

The S&P 500 rose 0.5% on the day, and the Nasdaq Composite also set a new intraday high. The Dow Jones Industrial Average, however, fell 216 points, or 0.4%. U.S. markets reopened after being closed the previous day for Memorial Day.

Semiconductor stocks were at the center of the market. Memory chip-related names in particular jumped. Micron Technology surged 20%, while Seagate Technology rose 5% and Western Digital gained 8%. The Roundhill Memory ETF also rose 15% to a record high.

Micron’s rally reflected a price-target increase and expectations for long-term contracts. UBS said Micron could rise more than 100% from current levels. UBS said AI is changing the structure of the memory industry overall and that the market is beginning to apply a more normal valuation to Micron. It added that Micron could continue to be re-rated as details of the structural shift become clearer.

Nvidia was another pillar of the index gains. Rothschild & Co Redburn raised its price target on Nvidia to $300 from $280. Timm Schulze-Melander rated the latest quarter as “almost flawless.” He said annualised data centre revenue accelerated to $300 billion with 92% growth year on year, from $250 billion with 75% growth. He also said revenue from hyperscale customers rose 115% from a year earlier and that 2025 capital spending is shifting toward silicon rather than land and buildings.

A cautious view also emerged on the competitive landscape around Nvidia. Schulze-Melander said competitors would need to grow faster than Nvidia for an extended period to prove they are taking market share. The market also focused on Nvidia having built investor confidence through its results.

Middle East developments remained an intraday variable. U.S. President Donald Trump said talks to end the war with Iran were “going smoothly.” He also said the United States could launch an attack if talks break down. The United States later said it carried out a 'self-defensive' air strike in southern Iran.

U.S. Central Command said the targets included missile launch sites and an Iranian vessel that was preparing to lay mines. Spokesman Tim Hawkins said the United States exercised restraint amid an ongoing ceasefire between the two countries. Geopolitical tensions persisted, but oil prices rebounded somewhat from intraday lows.

International oil prices also affected equities. U.S. West Texas Intermediate crude for July traded at $93 a barrel, down 3%, while Brent crude stood at $99 a barrel, up 3%. Last week, falling oil prices helped support stocks. U.S. crude posted its weakest weekly performance since April 17.

Oil prices remaining above early-year levels still weigh on rate expectations. According to CME FedWatch, the market priced in about a 13% chance of a July rate hike. That is sharply higher than 0.9% a month earlier.

Recent weekly moves also remain strong. The S&P 500 rose 0.9% last week, extending its longest weekly winning streak since the end of 2023. The Dow has risen in 3 of the past 4 weeks, and the Nasdaq has risen in 7 of the past 8 weeks. U.S. stocks are extending a semiconductor-led rally, but oil prices, interest rates and Middle East developments remain factors that could increase short-term volatility.