New York, May 29, 2026, 16:02 (EDT)
Dow ends over 51,000 as oil drops, Iran truce hopes lift sentiment The Dow Jones Industrial Average finished the session at 51,027.94, up 358.82 points, or 0.71%. Lower oil prices and some optimism about a possible U.S.-Iran truce helped push the move. The S&P 500 was higher by 19.91 points, or 0.26%, to close at 7,583.61. The Nasdaq Composite climbed 59.92 points, or 0.23%, ending at 26,978.21. Reuters
The move was noteworthy as the blue-chip Dow, a price-weighted index of 30 big U.S. names, jumped in on a rally led by tech and AI. Price-weighted means stocks trading at higher prices hold more pull on the average than cheaper names, even if they’re smaller. S&P Global
AI stocks are getting a look as investors weigh the earnings strength against worries about war pushing up inflation. Anthony Saglimbene, chief market strategist at Ameriprise, told Reuters this week that earnings backed up “strong AI secular tailwinds,” but he flagged “higher energy prices” and rising rates. Reuters
Dell is adding fuel to the AI trade. The tech company came in with record quarterly sales of $43.8 billion. AI-optimized server revenue hit $16.1 billion, a jump of 757% from a year ago. “AI opportunity shows no signs of slowing,” said vice chair and COO Jeff Clarke. Business Wire
Dell jumped 30%. Server stocks like Hewlett Packard Enterprise and Super Micro Computer moved higher too. Investors kept chasing companies linked to data-center spending, shrugging off inflation and rate concerns. Reuters
AI buzz is still running high, Wells Fargo chief equity strategist Ohsung Kwon said. “There’s definitely euphoric sentiment in the market around AI,” Kwon said. He pointed to earnings as the main driver for the rally. Profit reports took the spotlight in the session, with macro risks in the background. Reuters
Risk appetite was mixed. Shares of Gap and American Eagle Outfitters dropped as the retailers’ soft forecasts flagged trouble for discretionary spending. That’s the kind of spending shoppers tend to pull back on when facing tighter budgets. Dana Telsey at Telsey Advisory Group called Gap’s “moderated outlook” a disappointment given that consumers remain pretty resilient. Reuters
Markets are betting Friday’s trade on the idea that energy stress won’t stick around long enough to push up broader inflation. But Federal Reserve Vice Chair for Supervision Michelle Bowman said an extended Middle East shock could shift policy. Kansas City Fed President Jeffrey Schmid also flagged that the oil shock shouldn’t just be brushed off as short-lived. If oil prices climb again or truce talks break down, the rate-hike debate could heat up quickly. Reuters
Dow closed firm, ending above 51,000 as the session wrapped. S&P 500 and Nasdaq were up, tracking the move. Buyers stuck with the pattern that’s driven most of the month—earnings at the front, AI trades behind, oil prices staying under close watch.
