Pre mkt thoughts 25 May 26

Memorial day holiday in the US, stocks are not open however the eminis and nq futures are trading. ES opened at around 7520 in the morning - with a slight positive drift with very strong performance in asian japanese mkt trading (up ~3%)
Semi names in JP mkts continues with a surge of strength. 285A Kioxia is up almost 13% with other JP semi related names up 5-10%. Meanwhile 9984 Softbank has also broken the 7k levels as markets close the valuation gap for Masa's levered bets.
WTI Jul is down ~5,5% in hours reflecting market optimism generally towards a deal. While the treasury markets are not open, the 10Y and 30Y bond futures are up ~1% implying a move of ~12bp for the 10y and 5bps for the 30Y.
Overall we continue to play headline ping pong on the Iran, however the trend is that semis have been able to shake off any moves and continue to power on stronger.
Huawei has also unveiled the Tau scaling law in the 2026 IEEE symposium in Shanghai. It focuses on reducing signal delays through innovations like LogicFolding via reorganizing circuits for higher density and efficiency. In essence, by 2031, Huawei expects to have a transistor density that is equivalent to the 1.4nm process. This basically shortens the gap with TSMC. The Kirin chip this summer can be a guide on how realistic these promises of improvements in power and speed would be.
$688082 ACM research is up ~20% of this. Chinese names like Huahong SMIC and Huatian have all hit new highs.
Exciting times unveil ahead!