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U.S. stocks closed at record highs in May, with the S&P 500 rising for a ninth straight week and the Nasdaq gaining 8% for the month.
Major U.S. stock indexes finished the week and month at record highs, driven by a surge in technology shares and optimism regarding artificial intelligence. The S&P 500 extended its winning streak to nine consecutive weeks, while the Nasdaq Composite posted a roughly 8% gain for May [1].
Key takeaways
The market's upward momentum was largely fueled by significant gains in the technology sector. Dell Technologies posted its best day ever on Friday, with shares surging 32% after the server maker reported better-than-expected results and lifted its outlook on booming AI demand [1]. This rally followed a move the previous day where Snowflake shares soared 36% after the cloud-based data platform provider topped analyst estimates and announced a $6 billion AI deal with Amazon [2]. Despite these individual wins, the "Magnificent Seven" stocks ended mostly lower on Friday, though Microsoft shares rose 5.5% [1]. For the month, the tech-heavy Nasdaq outperformed its peers, rising roughly 8%, compared to a 5% gain for the S&P 500 and a 3% rise for the Dow [1].
Broader market sentiment was also shaped by developments in oil markets and government economic reports. Oil prices pulled back as West Texas Intermediate futures fell 1.7% to $87.75 and Brent crude settled down 1.8% to $92.05, following reports that President Donald Trump would make a final determination on a proposal to end the war with Iran [1]. On the economic front, the Personal Consumption Expenditures price index, the Federal Reserve's preferred inflation gauge, showed headline inflation rising 3.8% year-over-year in April, matching expectations, while the monthly reading of 0.4% came in below the 0.5% forecast [2]. However, first-quarter U.S. GDP was revised down to 1.6% from an initial reading of 2.0% [2].
The record-breaking performance underscores the market's intense focus on artificial intelligence as a primary driver of corporate value. The surge in Dell and Snowflake shares coincides with reports that AI lab Anthropic reached a valuation of nearly $1 trillion, and SpaceX is preparing for what could be the largest IPO in history next month [1]. While the softer-than-expected monthly inflation reading provided some relief, the overall data suggests the path to lower interest rates remains unclear; Northlight Asset Management noted that the current economic environment makes a rate cut in 2026 increasingly unlikely [2]. Investors are also watching regulatory developments in the crypto sector, where shares of SoFi Technologies jumped on news of a new stablecoin, and the sports sector, where MSG Sports hit record highs ahead of the New York Knicks' NBA Finals appearance [1].
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jun 3, 2026 · How we report
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Over 87% of the S&P 500 companies that have reported earnings so far have exceeded analysts' forecasts, according to FactSet.
On average, companies that beat forecasts have slipped about 0.2% the following day, which is weaker than the typical 0.6% gain seen in prior quarters.
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