Stock market today: Dow slips, S&P 500 and Nasdaq rise on Iran peace prospects

May 26, 2026 - 18:02

Wall Street delivered a split decision to start the holiday-shortened trading week, with the S&P 500 and the Nasdaq Composite edging higher while the Dow Jones Industrial Average slipped. The divergent moves came as investors weighed falling crude oil prices against lingering geopolitical tensions in the Middle East.

The broader market found support from a decline in energy costs, which helped lift shares of transportation and technology companies that are sensitive to fuel prices. Reports suggesting a potential de-escalation between Iran and its regional rivals raised hopes that supply routes through the Strait of Hormuz would remain open, easing fears of a major disruption to global oil shipments. Benchmark U.S. crude futures fell more than two percent on the news.

However, the Dow lagged behind, dragged lower by losses in industrial and financial stocks. Traders remained cautious, keeping a close eye on any new military movements near the critical waterway. The cautious tone kept gains in check, with many investors choosing to wait for clearer signals on both the geopolitical front and the path of interest rates. The mixed close reflected a market still balancing relief over lower energy prices with the reality of an unpredictable global landscape.