Wall Street achieved a historic milestone on Friday, with all three major indexes closing at record highs after posting strong weekly and monthly gains. The S&P 500 gained 0.2% to close at 7,579.74 points, while the Nasdaq 100 rose 0.4% and the Dow Jones Industrial Average climbed 0.7%. As per The Economic Times, the rally was driven by strong tech earnings and optimism around AI-led growth, with the S&P 500 on track for its ninth consecutive weekly gain, its longest winning streak since 1985. The Nasdaq was up 0.61% or 165 points to 27,073.47 as of 10:05 a.m. EST, while the S&P 500 traded 0.42% higher at 7,595.01 and the Dow Jones was up 0.37% to 50,855.59. According to NDTV, stocks were propelled higher by the same two forces that have been driving them for the last couple of months: great earnings and anticipation of an Iran deal.
Markets are awaiting details on reports that the U.S. and Iran have reached a preliminary deal, with President Donald Trump announcing that negotiations with Iran are "largely negotiated" as of Saturday, signaling that diplomatic efforts may still prevent further escalation in the conflict. However, Iran's Foreign Ministry called the U.S. overnight strikes on missile launch sites and other targets a "grave violation" of the countries' ceasefire agreement. The latest developments saw U.S. military officials describe Monday's strikes as defensive actions, targeting missile-launch sites and boats attempting to lay mines in the Strait of Hormuz. Iran responded by firing at U.S. aircraft and drones, with the Islamic Revolutionary Guard Corps claiming to have shot down an unmanned MQ-9 Reaper drone and forced other aircraft to flee. Crude oil prices dropped again after President Trump said he's making a "final determination" on a preliminary deal to extend a ceasefire with Iran, although mixed messages from both sides over when an agreement might be struck continued to confuse the outlook for a breakthrough. Pakistan's military chief Asim Munir, the main intermediary between the warring sides, told China that an agreement is "close to being reached." Market participants are placing their bets on peace while remaining cautious until there is more tangible progress in the agreement process.
Dell Technologies Inc. shares soared almost 30% as the company raised its annual revenue FY27 forecast to between $165 billion and $169 billion from $138 billion and $142 billion. The standout performance was driven by Dell's AI server revenue expectations, with the company now expecting AI server revenue of about $60 billion in fiscal 2027, up from $50 billion. This strong performance helped drive the Nasdaq to gain 0.61% or 165 points to 27,073.47 as of 10:05 a.m. EST. AI-led giants such as Micron Technology Inc., Nvidia Corp., and Advanced Micro Devices Inc. traded higher, with Micron Technology extending gains to soar nearly 6% to $975.5, Nvidia jumping over 1% to $217, and AMD trading 0.7% higher at $521.44. Hewlett Packard Enterprise and Super Micro Computer gained alongside Dell, while Microsoft climbed and the software services index also advanced. According to NDTV, those gains helped boost a handful of peers, including Hewlett Packard Enterprise and Super Micro Computer. Software stocks charged higher, with Palantir Technologies Inc. shares gaining 9.2% and Microsoft Corp. rising 5.5%. "This appears to be the type of market where good news is never fully priced in, and a 50% year-over-year increase in revenues is not deemed cyclical," said Mike O'Rourke, chief market strategist at JonesTrading Institutional Investor Services LLC, of the Dell release. The company's shares have more than tripled this year.
A handful of Federal Reserve officials provided optimistic views of the economy and the interest rate path, boosting market sentiment. San Francisco Fed President Mary Daly said the central bank's rate policy is "in a good place" and she's "cautiously optimistic" about the economy. Minneapolis Fed President Neel Kashkari said it's too early to conclude that interest rates need to rise. According to NDTV, a narrowing of the US merchandise-trade deficit as exports rose and retail inventories, meanwhile, rose slightly faster than expected. Despite the record-breaking performance, U.S. economic data on Thursday showed inflation increased at its fastest pace in three years in April, while GDP for the first quarter was revised lower to a 1.6% annual rise. According to The Economic Times, the Fed's Kansas City President Jeffrey Schmid warned the energy shock may not be temporary, while Vice Chair for Supervision Michelle Bowman said a persistent rise in inflation might require tighter monetary policy. Money markets expect the Federal Reserve to keep interest rates steady for the rest of the year, with expectations of a 25-basis-point hike in December.
Despite the overall market rally, some individual stocks faced pressure from earnings results. Costco slipped after the wholesaler's moderating membership growth raised concerns on Wall Street, while Gap shares fell after the company's Old Navy brand weighed on its full-year outlook. According to NDTV, Gap shares tumbled after the apparel retailer cut its annual sales forecast, while American Eagle Outfitters dropped after keeping its annual comparable sales forecast unchanged. Consumer staples shares were weak with heavyweights Costco and Walmart both down, while the S&P automaker index dropped after reports the Trump administration wants North American-built vehicles to have 82% regional content to qualify for preferential treatment under the U.S.-Mexico-Canada Agreement. The S&P automaker index dropped after reports the Trump administration wants North American-built vehicles to have 82% regional content to qualify for preferential treatment under the U.S.-Mexico-Canada Agreement.
