US Stocks Hit Record Highs as Dell Surges on AI Demand

U.S. stocks closed higher Friday, extending Wall Street’s record-setting rally as investors poured into technology shares led by Dell Technologies after the company posted stronger-than-expected earnings driven by artificial intelligence demand.

The S&P 500 rose 0.2%, marking its sixth consecutive gain and putting the benchmark index on track for its ninth straight winning week — the longest streak since 2023.

Meanwhile, the Dow Jones Industrial Average climbed 325 points, or 0.6%, while the Nasdaq Composite added 0.2%.

Dell jumps as AI boom fuels tech rally

Shares of Dell Technologies surged more than 31% after the company reported quarterly profits that significantly exceeded Wall Street expectations.

Dell also raised its full-year outlook, citing robust demand for AI-powered computing infrastructure and data center equipment.

The rally spilled into other major technology companies. Microsoft gained 3.6%, while Broadcom rose 2.4%.

Technology stocks have driven much of the market’s gains throughout May. According to market data, tech shares within the S&P 500 climbed more than 15% this month, even as many other sectors struggled to advance.

“The rally has been largely tech-led and supported by resilient earnings, but the key question is whether it can be sustained,” said Angelo Kourkafas, senior global strategist at Edward Jones.

Oil prices ease as Iran ceasefire talks continue

Markets also reacted to reports suggesting the United States and Iran are working toward extending a ceasefire agreement after weeks of military tensions.

The easing geopolitical fears pushed oil prices lower Friday. Brent crude, the international benchmark, fell 1.7% to settle at $91.12 per barrel, while U.S. crude dropped 1.7% to $87.36 per barrel.

Despite the decline, oil prices remain significantly above pre-war levels due to disruptions surrounding the Strait of Hormuz, a strategic waterway that handles roughly one-fifth of global oil and natural gas shipments.

Higher energy prices have continued feeding inflation concerns worldwide.

Inflation and Fed policy remain key concerns

Wall Street’s optimism has persisted despite mounting worries that the Iran conflict and elevated oil prices could further strain consumers and businesses.

Recent economic reports showed inflation accelerated in April to its highest level in nearly three years. Consumer confidence has also weakened as Americans face rising fuel and grocery costs.

Investors are now closely watching the Federal Reserve for signals about future interest rate decisions.

The Fed has kept rates steady in recent months while monitoring inflation pressures. Markets currently expect policymakers to leave rates unchanged during their next meeting in June.

Analysts warn that cutting interest rates too soon could worsen inflation at a time when prices are already rising because of higher energy costs and tariffs.

Corporate earnings continue supporting markets

Strong corporate profits have helped offset some investor fears about inflation and slowing economic growth.

According to FactSet, companies within the S&P 500 have reported overall earnings growth of roughly 28% for the latest quarter.

However, with most earnings reports now completed, analysts say investors may soon shift their focus back toward inflation, consumer spending and global geopolitical risks.

For now, Wall Street’s momentum remains heavily tied to the technology sector and the ongoing AI investment boom that continues driving record highs across major U.S. indexes.