The S&P 500 has achieved a remarkable ninth consecutive week of gains, marking its fourth consecutive record closing high with Friday's close at 7,580.06. According to latest reports, the index gained 16.43 points on Friday alone, while the Dow Jones Industrial Average climbed 363.49 points to 51,032.46 and the Nasdaq rose 55.15 points to 26,972.62. The holiday-shortened trading week saw all three major US indices register gains, with the Dow Jones Industrial Average advancing 0.72%, the S&P 500 rising 0.22%, and the Nasdaq Composite adding 0.20%. The rally has been driven by easing geopolitical tensions and an ongoing ceasefire framework, with risk appetite remaining firmly intact as optimism surrounding a potential resolution to the war with Iran continues to improve investor sentiment. US stocks pushed to new records, with the S&P 500 rising 0.51% and the Nasdaq gaining 0.65%, while the Dow Jones Industrial Average was up marginally by 0.08%.
While technology stocks have been the primary driver of the market rally, recent sessions have shown signs of consolidation after reaching new peaks. Intel fell 1.4%, Marvell Technology dropped 4.6%, and Qualcomm declined 6% after sharp gains on May 26, with the Philadelphia SE Semiconductor index losing 1.4% after hitting a record high. As reported by LPL Financial's Chief Technical Strategist Adam Turnquist, "Technology leadership remains difficult to ignore, with the sector continuing to push to new highs on both an absolute and relative basis compared to the broader market. That said, increasingly stretched momentum conditions and elevated positioning raise questions around the near-term durability of the advance." The Nvidia weakened by 1% and Zscaler tumbled 31.5% after the cloud security firm projected fourth-quarter revenue below expectations. However, Snowflake soared 37% after the data analytics firm posted revenue growth of 33% to $1.39 billion and adjusted earnings of 39 cents, both topping consensus estimates, and announced plans to spend $6 billion on Amazon Web Services over five years tied to Amazon's new Graviton processors. Micron surged roughly 18% to around $889, building on the prior session's 19% explosion that first lifted the largest U.S. memory maker above the $1 trillion market-capitalization line on May 26, with UBS lifting its price target to $1,625 from $535 and Barclays raising it to $1,175 from $675.
The rally came despite lingering concerns that the fragile peace process in the Middle East could unravel, as investors chose to focus on signs of progress in negotiations between the United States and Iran. Global Brent crude prices fell towards the $87 per barrel mark during the week, while on Friday the August Brent crude contract declined 1.7% to settle at $91.12 per barrel. US crude oil for July delivery also dropped 1.7% to $87.36 per barrel. The prospect of smoother energy flows through the region helped ease inflation concerns and supported bond markets. The yield on the benchmark US 10-year Treasury note eased to 4.44% from 4.45% a day earlier and has now declined for four consecutive sessions, while the 30-year Treasury yield also edged lower to 4.9817%. The dollar weakened amid reports of progress in the US-Iran talks, with the dollar index slipping 0.1% to 98.90 and the euro gaining 0.1% to $1.1663.
A major driver of the market's gains was growing optimism surrounding ceasefire negotiations between the United States and Iran, with the technology sector within the S&P 500 surging more than 15% in May even as most other sectors in the benchmark index declined. One of the standout performers was Dell Technologies, whose shares soared nearly 30% after the company raised its sales outlook well above Wall Street expectations. The company cited approximately $60 billion in expected revenue from AI servers as a key growth driver. The Nasdaq 100 also gained 0.4%, while the Dow rose 0.7%, demonstrating the continued strength in technology-focused investments. Investors were also looking out for any update on the Federal Reserve policy, with markets currently expecting the Federal Reserve to keep interest rates unchanged at its next meeting and potentially throughout the remainder of the year.
Market participants are now turning their attention to upcoming economic data, with the personal consumption expenditures index data scheduled for release on Thursday. As reported by Goldman Sachs, the firm has raised its 2026 year-end forecast for the S&P 500 to 8,000 from 7,600, citing continued strength in corporate earnings. The Dow Jones Industrial Average rose 182.60 points to 50,644.28, while the Nasdaq Composite gained 18.55 points to 26,674.74. Volume on U.S. exchanges was 18.81 billion shares, compared with the 18.78 billion average for the full session over the last 20 trading days. According to Clark Capital Management Group's Chief Investment Officer Sean Clark, "After such a large run-up in the markets, it's not surprising to me that there is a little bit of a pause." The United States and Iran have agreed on a memorandum of understanding to extend their ceasefire by 60 days, though final approval from President Donald Trump is still pending, according to reports by Axios. Market strategists are increasingly optimistic about the broader market participation, with Blanke Schein Wealth Management's Chief Investment Officer Robert Schein noting that "outside of tech, the broadening out other sectors are participating, which is a very positive sign for the markets overall," suggesting the current rally has legitimate fundamentals supporting it.
