US Stocks Close Higher, Led by Technology Sector
US stocks closed higher, with the S&P 500 and Nasdaq Composite hitting new record highs on Thursday (May 28th), as the technology sector once again led gains, while the market also weighed reports that US and Iranian negotiators had reached an agreement to extend the ceasefire. The S&P 500 rose 0.6%, and the Nasdaq gained 0.9%, while the Dow Jones Industrial Average remained relatively flat.
The rally was led by technology stocks after Snowflake's performance outlook reignited market enthusiasm for the AI theme. Snowflake shares surged about 37% and were on track for their best-ever daily gain, after the cloud-based data platform company released stronger-than-expected fiscal second-quarter guidance and posted quarterly results that beat estimates on both revenue and profit. Snowflake also announced plans to spend $6 billion on Amazon Web Services over five years.
This news also boosted other enterprise software stocks. The iShares Expanded Tech-Software Sector ETF rose nearly 3%, reflecting a broadening rally across the technology software subsector, not just one major name.
The gains also spread to memory and semiconductor stocks. Sandisk shares rose more than 6%, while chip giants Qualcomm and Advanced Micro Devices rallied around 6% and 5%, respectively, underscoring the rotation back into assets most sensitive to the AI infrastructure spending narrative.
Going forward, the market's focus will be on the sustainability of the technology rally after a major surge in several names, as well as further developments on the US-Iran geopolitical issue, which could impact risk sentiment, oil prices, and interest rate expectations.
Source: Newsmaker.id
