Stock Market Today, May 26: Micron Surges After UBS Lifts Price Target on AI Optimism

In midday trading, the S&P 500 (SNPINDEX:^GSPC) roseate 0.57% to 7,516.11, the Nasdaq Composite (NASDAQINDEX:^IXIC) climbed 1.00% to 26,606.90 connected AI strength, portion the Dow Jones Industrial Average (DJINDICES:^DJI) slipped 0.23% to 50,463.03 arsenic non-tech bluish chips lagged.

Market movers

Micron Technology (NASDAQ:MU) jumped astir 18% toward a $1 trillion valuation aft UBS (NYSE:UBS) tripled its terms target, powering semiconductor and AI gains, portion question names including United Airlines (NASDAQ:UAL) and Carnival (NYSE:CCL) rallied connected easing lipid and optimism implicit Iran bid talks.

What this means for investors

Concerns astir a bubble forming successful AI-related names aren’t slowing the rally successful galore of those stocks. Micron Technology banal is starring the mode today. Shares of the semiconductor shaper person much than tripled conscionable this year, and today’s 18% rally led its marketplace headdress to transverse the $1 trillion mark.

The banal jumped aft President Trump praised the institution astatine a rally connected Friday for its “hundreds of billions” of concern successful the U.S. economy. Shares are besides gaining aft UBS expert Timothy Arcuri much than tripled his firm’s terms people connected Micron from $535 to $1625 per share.

Other factors driving the marketplace contiguous are renewed optimism connected a bid woody with Iran, caller U.S. subject strikes labeled arsenic defensive, and falling lipid prices and Treasury yields. Lower lipid prices and a pullback successful the 10-year output are helping to easiness ostentation worries.

There remains important uncertainty successful the market, and valuations are becoming stretched crossed galore areas. Long-term investors shouldn’t interest astir the volatility, but could see taking immoderate profits astatine this signifier of the bull market.

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