Dow, S&P 500 and Nasdaq close at record highs on US-Iran deal hopes

Traditional markets surged on ceasefire optimism while crypto sat on the sidelines, with Bitcoin stuck below $73K amid persistent ETF outflows.

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Add us on Google by Editorial Team May. 29, 2026

All three major US stock indices hit fresh all-time highs on May 28, with investors betting heavily that a US-Iran deal is about to cross the finish line. The S&P 500 closed at 7,563.33, up 0.6%. The Nasdaq Composite did even better, climbing 0.9% to land at 26,917.47. The Dow Jones Industrial Average rose to 50,669.77.

Bitcoin traded below $73,000, and Ethereum along with various altcoins drifted sideways or lower. The divergence between traditional equities and digital assets tells a story worth paying attention to.

The deal driving the rally

The catalyst behind the equity surge was a reported tentative memorandum of understanding between the US and Iran. The framework reportedly includes a 60-day extension of a ceasefire and the reopening of access to the Strait of Hormuz, one of the most strategically critical chokepoints for global oil shipments.

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Roughly 20% of the world’s petroleum passes through that narrow waterway.

Oil prices fell sharply on the news. Lower oil prices reduce input costs for companies across nearly every sector, from airlines to manufacturers to retailers.

President Trump was anticipated to make a decisive announcement on the agreement by May 29, lending additional urgency and optimism to the trading session. Pakistan, which has been serving as a third-party mediator, had expressed optimism about a breakthrough in negotiations as early as mid-May.

Crypto’s conspicuous absence from the party

Bitcoin remained stuck below $73,000 despite what should be a favorable macro backdrop. The culprit appears to be ongoing ETF outflows. Even as traditional investors piled into equities on the back of reduced geopolitical tensions, Bitcoin spot ETFs saw capital leaving.

Ethereum and a range of altcoins also demonstrated lower or sideways trading during the session, reinforcing the impression that this wasn’t just a Bitcoin-specific problem.

What this divergence means for investors

For crypto investors, Bitcoin’s inability to rally alongside a broad risk-on move in equities is a yellow flag. In previous cycles, Bitcoin often tracked the Nasdaq closely, benefiting from the same risk appetite that pushed tech stocks higher.

The ETF outflow dynamic deserves close monitoring. Spot Bitcoin ETFs were supposed to be the bridge between traditional finance and crypto. When money flows out of those vehicles during a risk-on equity session, it suggests that the bridge is carrying traffic in only one direction.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.