US Stocks Continue Record Climb Amid Strong Tech Gains
Major U.S. stock indexes achieved new all-time highs, propelled by strong performance from technology companies, including Dell Technologies. The S&P 500 recorded its seventh consecutive gain as concerns about inflation and geopolitical tensions linger.
U.S. stock indexes advanced further into record territory on Friday, with the S&P 500 rising 0.2%, marking its seventh consecutive gain and ninth straight winning week, the longest such streak since 2023. The index reached an all-time high for the fourth day in a row.
The Dow Jones Industrial Average added 0.7%, while the Nasdaq composite increased by 0.2%, both reaching new highs earlier in the week. A significant driver of the market's performance has been the technology sector, which saw a 15% increase in May alone. Angelo Kourkafas, a senior global strategist at Edward Jones, noted in a research note that "the rally has been largely tech-led and supported by resilient earnings, but the key question is whether it can be sustained."
Dell Technologies led the gains with a remarkable 32.8% surge after exceeding profit expectations and raising its outlook due to strong demand for AI computing. However, most other sectors within the S&P 500 experienced declines, with companies like Paramount Skydance and Amazon.com seeing losses.
Despite the stock market's gains, concerns about rising inflation fueled by the ongoing U.S.-Iran conflict persist. Reports indicate the two nations may be negotiating an extension of a ceasefire, easing some pressure on oil prices, which fell by 1.7%. The price for a barrel of Brent crude settled at $91.12, still notably elevated compared to levels before the conflict.
Treasury yields remained stable, with the yield on the 10-year Treasury slightly declining. High oil prices continue to pose challenges, impacting inflation and consumer spending. Recent reports have shown a rise in inflation levels, prompting scrutiny towards consumer behavior and the Federal Reserve's future interest rate decisions. The S&P 500 recorded a 5.1% gain for May and is up 10.7% year-to-date, with stocks closing Friday on positive notes: the S&P 500 at 7,580.06, the Dow at 51,032.46, and the Nasdaq at 26,972.62. Markets in Europe and Asia also exhibited upward trends.