US Stocks Hit Records as Dell Surges on AI Demand

U.S. stock indexes closed at record highs on Friday, May 29, 2026, adding to all-time highs set the previous day [1]. The S&P 500 rose 0.2% to 7,580.06, securing its ninth consecutive winning week, the longest streak since 2023 [1][4]. The rally was led by technology stocks, specifically Dell Technologies, which jumped 32.8% after the company reported profits that surpassed expectations and raised its outlook due to powerful demand for AI computing [1].

Key takeaways

• The S&P 500 rose 0.2% to 7,580.06, while the Dow gained 0.7% to 51,032.46 and the Nasdaq added 0.2% to 26,972.62 [1][2].
• Dell Technologies soared 32.8% after beating profit expectations and raising its guidance, citing robust demand for AI servers [1][4].
• Despite the index gains, nine of the 11 primary S&P 500 sectors finished lower, with consumer staples dropping 2% and communication services falling 1.7% [2].
• Oil prices retreated, with Brent crude falling 1.7% and West Texas Intermediate dropping 1.73% after President Donald Trump signaled a potential diplomatic update regarding Iran [1][2].

Dell and AI Momentum Fuel Tech Rally

The market’s upward trajectory was heavily influenced by the performance of Dell Technologies, whose shares skyrocketed nearly 33% following a significant first-quarter revenue and profit beat [2][4]. The enterprise hardware provider also revised its full-year fiscal guidance upward, a move that re-energized broader confidence in AI infrastructure demand [2]. This strength in the technology sector helped lift other major players; memory chipmaker Micron advanced more than 5%, mobile chip pioneer Qualcomm rose over 3%, and software stocks ServiceNow and Datadog surged approximately 14% and 10%, respectively [2][4].

The technology and financials sectors were the only two of the 11 primary S&P 500 sectors to record gains, rising 1.87% and 0.56%, respectively [2]. The strong performance from software firms like ServiceNow and Datadog suggested to some analysts that AI demand might be broadening beyond a handful of mega-cap technology companies [4].

Sector Divergence and Energy Markets

While the headline indexes reached record levels, the market showed signs of divergence beneath the surface. Consumer-centric and retail companies faced significant downward pressure following a series of soft quarterly reports [2]. Gap sank over 15%, American Eagle Outfitters dropped nearly 12%, and big-box retailer Costco Wholesale fell almost 4% as corporate outlooks pointed to a tightening retail environment [2][4]. Additionally, cybersecurity firm SentinelOne pulled back by over 8%, and space stocks such as Rocket Lab declined following a rocket explosion involving Blue Origin [2][4].