By Sarah Chen | May 29, 2026
The S&P 500 and Nasdaq Composite closed at record highs on Friday, capping a winning month as the US and Iran agreed to extend their ceasefire agreement, removing a key source of geopolitical uncertainty from the market. The S&P 500 rose 0.6% to 6,892. The Nasdaq gained 0.8% to 22,210.
The ceasefire extension was announced mid-afternoon and triggered an immediate rally. The VIX fell below 12, its lowest level in three weeks. Oil prices continued their decline, with WTI settling at $86.20, down more than 12% from the peak earlier in the month.
For May, the S&P 500 gained 3.8%, the Nasdaq rose 4.5%, and the Dow added 2.9%. It was the fourth consecutive winning month for all three major indices.
The standout sector for the month was technology, which gained 6.2%. Semiconductors led within tech, with the SOX index up 8.1%. Financials added 4.3%, while energy was the only sector to post a loss, down 1.8% on falling oil prices.
The market enters June with momentum, declining geopolitical risk, and an AI investment cycle that shows no signs of slowing.
