US markets are closed for Memorial Day as investors parse a cautious thaw in US‑Iran talks and a host of policy and tech developments.
Diplomatic efforts remain fragile: Iran’s nuclear programme continues to be the key sticking point preventing a full agreement with Washington, even as reports of narrowed gaps have buoyed risk appetite. European and Asian equities rallied on the optimism — European stocks climbed about 1.6% while major indexes in Japan and China rose between 1% and 1.5% — and oil tumbled roughly 6%, with Brent trading near $97 a barrel.
In Washington, Kevin Warsh was sworn in as Fed chair on Friday, marking a leadership change at a pivotal moment for central‑bank policy as markets weigh inflation and geopolitical shocks.
Currency markets reflected the risk rally and China‑related flows: the yuan strengthened to about 6.8 per dollar, its strongest level in roughly three years.
ECB President Christine Lagarde said the bank will revise its inflation outlook in June, but strategists largely expect global yields to remain elevated even if the Iran conflict ends imminently, keeping pressure on bond markets and borrowing costs.
In technology, Huawei announced what it called a breakthrough in logic chips, claiming a pathway to narrow the gap with industry leader TSMC and plans to begin producing 1.4‑nanometre chips by 2031 using its “LogicFolding” process — a bold target that would reshape competitive dynamics if realised.
With US equity trading paused for the holiday, markets will reopen to assess whether the diplomatic momentum, central‑bank shifts and corporate tech developments can deliver a sustained risk‑on pivot.