NEW YORK, May 30, 2026, 13:05 (EDT)
S&P 500 posted its ninth weekly gain as U.S. stocks set more records, keeping the rally alive. Investors are now looking ahead to the next jobs report, bond yields, and what’s next for the artificial-intelligence trade. The NYSE is closed Saturday. This week’s session was already shorter because of the Memorial Day market holiday on May 25.
Investors are putting money into growth linked to AI — that is, artificial intelligence software and hardware for automating computing — despite inflation staying above the Federal Reserve’s 2% target. A strong jobs report might raise bets on more rate hikes, while softer data could help keep the rally going.
S&P 500 finished up 0.2% Friday at 7,580.06. The Dow Jones Industrial Average was stronger, up 0.7% at 51,032.46, while the Nasdaq Composite picked up 0.2% to close at 26,972.62. The Russell 2000 slid 0.6% to 2,919.34, reminding traders the move wasn’t across the board. On the week, S&P 500 jumped 1.4%, Dow gained 0.9%, Nasdaq rose 2.4% and Russell added 1.7%.
Dell Technologies jumped Friday. Shares rallied after the company posted $16.1 billion in AI-server revenue for the quarter, topping PC sales of $14.6 billion. Dell also raised its fiscal 2027 AI-server revenue target to $60 billion, up from $50 billion.
Super Micro Computer and Hewlett Packard Enterprise, stocks tied to AI servers, jumped about 14%. HP, which competes in PCs, gained 10%. Melius Research analysts said, “never seen anything like this.” Melissa Otto, head of S&P Global Visible Alpha research, said Dell is ahead of rivals on scale and supplier ties. Reuters
Inflation numbers are mixed. The PCE index, which the Fed prefers for tracking consumer prices, was up 0.4% in April and 3.8% over the year. Core PCE, without food and energy, clocked a 3.3% gain year over year. The personal saving rate dropped to 2.6%.
S&P 500 and Nasdaq closed at record highs on Thursday, Reuters reported, shrugging off firm inflation numbers after news of a draft U.S.-Iran ceasefire extension. Jamie Cox, managing partner at Harris Financial Group, said traders were on a “hair trigger” for deal headlines. Jitania Kandhari at Morgan Stanley Investment Management said investors kept focus on strong corporate earnings, looking past risks. Reuters
Investors are watching for the next big data point on Friday, June 5, when the Labor Department puts out the May jobs report at 8:30 a.m. ET. Nonfarm payroll numbers in the report give a key read each month on hiring trends, showing if the labor market is cooling enough for the Fed.
May payrolls are expected to increase by 85,000 with unemployment holding at 4.3%, according to a Reuters poll. Liz Ann Sonders, chief investment strategist at the Schwab Center for Financial Research, said a strong jobs number and higher inflation could keep changing the Fed policy outlook. Angelo Kourkafas at Edward Jones said a payrolls gain above 150,000 might stoke worries about an “overheating economy.” Reuters
Broadcom’s latest numbers are due Wednesday, putting the focus back on the AI trade. The Philadelphia SE Semiconductor Index has gained about 80% since its March 30 low, with Broadcom shares climbing more than 50% in that time, Reuters said. The S&P 500 is up over 19%.
The risks are clear. If inflation doesn’t cool, jobs numbers come in too strong, or peace efforts in the Middle East stumble, Treasury yields could rise again and pressure stocks. Chuck Carlson, CEO of Horizon Investment Services, said the worst scenario for investors would be a lasting jump in rates.
Buyers are in control for now, with the tape favoring gains. Next week, traders are watching to see if the rally can spread past AI and megacap tech, or if the new records set Friday signal a market growing complacent ahead of tougher data.
