New York, May 29, 2026, 11:02 EDT
- Dow gained 243.70 points, or 0.48%, to 50,912.67 late morning. S&P 500 and Nasdaq were also in the green.
- AI trades and bets on a longer U.S.-Iran truce held Wall Street just under record highs.
- Inflation and the jobs numbers due next week are the risks in the near term.
Dow Jones climbed late Friday morning, up 243.70 points, or 0.48%, to 50,912.67 as buyers backed big U.S. names linked to artificial intelligence and weighed signals that Middle East tensions could cool. The S&P 500 moved 0.27% higher and the Nasdaq was up 0.22%, LSEG data showed, as reported by Reuters, which noted that quotes were delayed at least 15 minutes.
Stocks kept rising into the end of May. Reuters said Friday saw all three big U.S. indexes hit intraday highs, heading for gains for both the week and month, as tech shares climbed and headlines pointed to a Washington-Tehran ceasefire extension that still needed President Donald Trump’s signoff.
The move in the headline index didn’t tell the full story. Reuters said nine of 11 major S&P 500 sectors traded lower at one point, showing that gains relied on some large tech and growth stocks while most of the market lagged.
Dell moved the most. The company reported first-quarter revenue up 88% from a year ago to $43.8 billion, with AI-optimized server revenue hitting $16.1 billion. “AI opportunity shows no signs of slowing,” vice chairman and COO Jeff Clarke said. Artificial intelligence, or AI, covers software that does tasks once tied to human reasoning, and Dell sells the servers that train and run that software. Business Wire
Hardware stocks moved higher as Dell shares jumped on raised full-year guidance, Reuters reported. Hewlett Packard Enterprise and Super Micro Computer also advanced, pushing the Dow with gains linked to AI infrastructure plays, not just defensive buying.
“Markets are ending May with a risk-on bias,” Bob Savage, head of markets macro strategy at BNY, told Reuters. In market terms, risk-on describes when investors go for assets that can swing more, including stocks and other plays tied to the economy. Reuters
Rates are still in focus. U.S. GDP was revised lower on Thursday, with Q1 growth now at a 1.6% annualized rate. The personal consumption expenditures price index, which the Fed watches closely, climbed 3.8% for the 12 months through April, the quickest rise since May 2023.
“We have a stagflation problem,” said Peter Cardillo, chief market economist at Spartan Capital Securities, in comments to Reuters about the mix of weak growth and high inflation. Reuters
Fed officials are holding firm on policy signals. St. Louis Fed President Alberto Musalem said he pushed for dropping the central bank’s “easing bias” phrase, which had signaled possible rate cuts, saying the term doesn’t fit the current outlook or risk balance anymore. Reuters
Payrolls are the next big focus for the market. A Reuters poll points to a 96,000 gain in May jobs, with jobless holding at 4.3%. Liz Ann Sonders, chief investment strategist at the Schwab Center for Financial Research, said if jobs come in strong and inflation stays up, the Fed’s policy view could shift.
The bear case is clear enough. If ceasefire headlines fade, oil snaps back, or jobs data runs hot, Treasury yields can climb, putting pressure on a rally already led by AI earnings and just a handful of names.
The Dow is trading above 50,900 with buyers in charge for now. The focus shifts to June, with some asking if the market can keep rising if the Fed signals less patience and new data stays hot.
