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].

Energy markets also shifted as oil prices settled lower. West Texas Intermediate crude for July delivery decreased by 1.73% to settle at $87.36 a barrel, while Brent crude fell 1.77% to $92.05 [2]. The drop came after President Donald Trump indicated via social media that a final decision regarding a proposed diplomatic framework with Iran would be announced soon [2]. Meanwhile, Federal Reserve Vice Chair for Supervision Michelle Bowman cautioned that a prolonged Middle East energy shock could alter her economic outlook, warning that persistent disruptions into the second half of the year could lead to broader effects on inflation [2].

Why it matters

The S&P 500’s ninth straight winning week signals sustained bullish momentum in the market, having gained more than 6% in May despite concerns over energy prices and shipping [4]. However, with indexes near record highs, attention is turning toward upcoming economic data. Investors are expected to closely monitor inflation, jobs data, and consumer sentiment as the market moves into June [4]. Federal Reserve officials have also highlighted the potential impact of geopolitical energy conflicts on inflation, suggesting that future market direction may depend heavily on both domestic economic indicators and international developments [2].