US markets surge as Iran talks ease tensions; Fed probe closed

The Dow Jones Industrial Average reached its highest intraday level in approximately three months on 22 May 2026, driven by renewed investor confidence in diplomatic efforts to de-escalate tensions in the Middle East. Trading began with strong buying interest as market participants viewed progress in negotiations between the United States and Iran regarding an end to hostilities as a positive development for global stability.

The index briefly rose by more than 400 US dollars compared to the previous day's closing price, reflecting the immediate market reaction to reports of advancing talks. While the specific outcomes of the negotiations were not detailed, the perception of movement toward a cessation of hostilities was sufficient to trigger significant upward momentum in US equity markets.

Concurrently, significant developments occurred within US financial governance structures. The United States Justice Department closed its criminal probe into Federal Reserve Chair Jerome Powell, removing a potential legal hurdle for the confirmation of President Donald Trump’s nominee, Kevin Warsh, to lead the central bank.

The inquiry, which had focused on cost overruns related to renovations of the Fed’s Washington headquarters, was transferred by US Attorney Jeanine Pirro to the Fed’s Office of Inspector General. This administrative shift effectively clears the path for Warsh’s confirmation, marking a pivotal moment in the leadership transition at the US central bank.

The convergence of easing geopolitical risks and resolved regulatory uncertainties contributed to a favourable trading environment on 22 May. Investors appear to be pricing in a period of reduced volatility, with the Dow’s intraday surge underscoring the sensitivity of financial markets to both diplomatic breakthroughs and institutional stability.