US equities posted modest gains on Friday, capping a ninth consecutive weekly advance for the S&P 500 — the longest win streak since 2023. The S&P 500 closed at 7,582 (+0.24%), the Nasdaq 100 at 30,333 (+0.36%), and the Dow Jones Industrial Average led the way at 51,033 (+0.72%).
The tailwind came from renewed geopolitical optimism. President Trump outlined demands for a potential Iran agreement on Truth Social, including a pledge never to develop nuclear weapons and the immediate reopening of the Strait of Hormuz. However, Iranian news agency Fars called Trump's claims a "mix of truth and lies," insisting that $12 billion in frozen assets must be released before further negotiations. Markets initially dipped on the pushback but quickly recovered — traders focused on the administration's belief that a deal is close.
Dell Leads on AI Earnings
Dell Technologies surged roughly 33% after reporting earnings that beat analyst expectations on every metric. The company posted its fastest sales growth since going public, driven by strong AI server demand, and raised its outlook. The report reinforces the narrative that the AI infrastructure buildout is accelerating, not slowing.
Fed: Still Watching
A series of Fed speakers took a cautious tone. Bowman said progress on inflation has stalled and would consider shifting her outlook if war-driven inflation broadens. Kashkari said it's premature to conclude rates need to rise following April's PCE data, but the figures heighten his attention to inflation risks. Paulson said inflation pressures are weighing on the economy and firms are struggling to plan ahead. Schmid was the most hawkish, saying inflation is "too hot" and policy may need to become more restrictive.
Oil Posts Biggest Monthly Drop in a Year
WTI crude fell $1.54 to $87.36/barrel, posting its worst monthly performance since April 2025 as Hormuz hopes weighed on the risk premium. Gold traded near $4,593/oz, easing modestly in May for a third straight monthly decline.
Other Headlines
- Clorox shares tumbled after CEO Linda Rendle stepped down for "health reasons." The stock has lost 57% over her six-year tenure.
- Japan signaled it may pause its quantitative tightening program amid bond market turmoil. The 10-year JGB yield hit 2.8%, a 30-year high.
- Goldman flagged capacitors as the next AI "picks and shovels" opportunity, comparing the MLCC cycle to the memory stock boom.
The Week Ahead
It's a heavy data week. Monday brings the ISM Manufacturing PMI for May, followed by the May jobs report (NFP) on Friday. Broadcom (AVGO) reports earnings as the standout on the calendar. Fed speakers will continue to parse the data, with the ISM and NFP prints likely to set the tone for rate expectations.
Bottom Line
Markets are riding a rare combination: geopolitical optimism, stellar AI earnings, and record buyback programs. But beneath the surface, sticky inflation and hawkish Fed commentary are a reminder that the path higher isn't frictionless. This week's data — especially ISM and NFP — will test whether the rally can sustain itself without imminent Fed help.
