The Daily Wrap – May 27, 2026

An AI-driven earnings boom is fueling market optimism, with Goldman Sachs raising its S&P 500 target to 8,000 and chipmakers like SK Hynix and Micron joining the trillion-dollar club. In major corporate and geopolitical news, Boeing has met FAA requirements to increase its 737 Max production rate, while the White House has denied Iranian reports of a draft peace deal concerning the Strait of Hormuz. This enthusiasm is also reflected in Nvidia's plan to spend $150 billion a year on Taiwanese suppliers and Robinhood's new feature allowing customers to connect their own AI agents for trading.

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From Pinextra Pro in Tampa, it's Wednesday, May 27th, and I'm Rachel Anderson with the Daily Rap. Strategists at Goldman Sachs have significantly raised their year-end target for the SP 500, now calling for the index to hit 8,000. They joined peers at Morgan Stanley and Deutsche Bank in forecasting a 17% return for the year, citing exceptionally strong first-quarter earnings and projecting that the AI infrastructure boom will account for roughly half of the SP's earnings per share growth this year. Oil prices initially plunged nearly 4% after Iranian state media claimed a draft peace deal is reached to reopen the vital Strait of Hormuz. However, the White House issued a sharp denial, calling the report a complete fabrication and urging that nobody should believe what Iranian state media is putting out. This leaves the status of the high-stakes negotiations in continued uncertainty. The memory chip rally is reaching a fever pitch. South Korea's SK Heinex saw its shares jump over 12% today, pushing its market capitalization past the $1 trillion mark. This milestone comes just one day after its US peer, Micron Technology, crossed the same threshold, cementing the big three memory makers including Samsung in the trillion dollar club. Speaking of Samsung, a major crisis has been averted. Union members of the company's chip division had voted to accept a new compensation deal, calling off a strike that threatened to cripple the glutal supply of high-demand memory chips. The deal, which hands chip workers an average bonus of around $340,000, highlights the immense profits being generated by the AI boom, but also exposes deep internal divisions, as some non-chip employees are looking at bonuses that are a fraction of that size. The leader in AI chips NVIDIA is doubling down on its most critical partner. CEO Jensen Huang announced plans to increase spending with Taiwanese suppliers to $150 billion annually. This massive vote of confidence in Taiwan, home to key manufacturer TSMC, comes despite persistent geopolitical concerns and signals Nvidia's deep reliance on the island's manufacturing prowess. A significant development for Boeing today. CEO Kelly Oorkberg announced the company has met FAA requirements to increase production of its best-selling 737 MAX aircraft. The production rate will now ramp up from 42 to 47 jets per month, a process expected to stabilize in the coming months. While the company aims for even higher REITs in the future, the CEO acknowledged they still have work to do on safety and quality processes. Shares of DICOM industry soared over an incredible 28% today. The telecom and data center builder absolutely smashed earnings expectations and significantly raised its full-year guidance, with its CEO citing unprecedented and intensifying demand for fiber and data center construction. Brokerage firm Robinhood announced it will now allow customers to connect their own AI agents to trade stocks and use a dedicated virtual credit card. This bring your own AI approach allows users to deploy agents to do things like automatically rebalance a portfolio or even hunt for and purchase hard-to-get concert tickets. U.S. Treasury yields continued to dip lower. The 10-year is at 4.47%, the two-year yield is at 4.03%, and the 30-year bond yield is at 5.01%. And now let's check the scoreboard. Wall Street indices headed in different directions today, after investors got mixed messages on the Strait of Hormuz. Midday the SP was down under a tenth of a percent, the Dow was up over three tenths percent, and the Nasdaq was down roughly a tenth of a percent. That's all for your daily wrap today. I'm Rachel Anderson from PhoenixTra Pro, turning data into stories.