May 22 Market Wrap: Fed Hawkishness & Iran Peace Hopes (İş Yatırım)
Iran Peace Talks and Fed Hawkishness Drive Market Swings
On Friday, May 22, global markets were pulled by two opposing forces: progress in Iran ceasefire negotiations boosted risk appetite, while Fed Governor Christopher Waller’s unexpectedly hawkish remarks triggered a sharp repricing of rate expectations.
Stocks Extend Winning Streak to Eight Weeks
The S&P 500 edged 0.36% higher to 7,472.75, on track for its eighth consecutive weekly gain. The Dow rose 0.66%, while the Nasdaq added just 0.12%. Health care gained 1.19%, infrastructure 0.80%, and industrials 0.69%, while communication services fell 0.68%. In Europe, the DAX surged 1.15%, leading gains as Germany’s export-heavy economy benefited from AI infrastructure spending.
Bond Markets Hit by Hawkish Shock
Fed Governor Waller warned that the next rate move could be a hike, citing energy-driven inflation risks. The 2-year Treasury yield jumped to 4.125%, the highest since February 2025, while the 30-year yield closed at 5.066%. Markets are now fully pricing a Fed rate increase in 2026.
Dollar Steady, Gold Slides
The dollar index held flat at 99.28, while EUR/USD dipped 0.10%. Gold fell 0.84% to $4,504.77, and silver tumbled 1.61% as rising real yields and easing geopolitical tensions weighed. WTI crude rose 0.54% to $96.87 amid lingering uncertainty over the Strait of Hormuz. Copper gained 1.13%, supported by improving global industrial demand.
This report was prepared by İş Yatırım.
Impacted Symbols
Symbols affected by this headline and their sentiment signals
UK 100 INDEX
The FTSE 100 index had a moderate gain; while the news reports international developments, the index's performance was limited compared to other European markets.
Dow Jones Industrial Average Index
The Dow Jones index ended the day with a modest gain; the news summarizes market conditions and does not have a direct decisive impact on the index's direction.
DAX Index
The DAX index closed with strong gains, supported by the AI investment theme; this could reinforce the index's short-term positive outlook.
CAC 40 Index
The CAC 40 index recorded a mid-level rise; the market report reflects the general situation and has limited impact on the index.
NASDAQ 100 Index
The Nasdaq 100 index ended positive driven by tech stock gains; however, hawkish Fed rhetoric could pressure growth stocks.
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