US Stocks Hit Record Highs, AI Rally and Iran Deal Hopes
US stocks closed higher at a new record high on Friday (May 29th) as the market assessed the sustainability of the AI-driven rally while monitoring the outlook for energy supplies from the Middle East and its impact on inflation. The S&P 500 and Nasdaq each rose 0.2%, while the Dow Jones Industrial Average gained 0.8%.
Monthly, market performance remained strong. The Nasdaq surged around 8% throughout May, the S&P 500 gained 5%, and the Dow added 2%, confirming the continued resilience of the equity rally despite the prevailing energy volatility and high interest rates.
Sentiment was also influenced by reports that the US and Iran had agreed to a 60-day memorandum to extend the ceasefire and begin the process of restoring shipping through the Strait of Hormuz. However, the agreement is said to still await President Donald Trump's final approval, so the market continues to factor in headline risk. However, falling energy prices and bond yields provided broad, albeit limited, support.
Sector rotation appeared selective, with financials and consumer defensive sectors showing cautious gains. In individual stocks, Microsoft rose 5.4% and Oracle surged more than 10%, as sentiment for AI software bolstered by news of a new investment round in Anthropic.
Dell was in the spotlight, surging more than 30% after its AI server business boosted its performance forecast, reinforcing the narrative that AI infrastructure spending remains a key driver of the rally, and a key indicator for the market to assess whether the rally still has fuel for the coming quarter.
Source: Newsmaker.id
