U.S. stocks closed at fresh record highs on Friday, extending one of the strongest market rallies in recent years as investor enthusiasm surrounding artificial intelligence continued to drive gains across the technology sector.
The S&P 500 and Nasdaq Composite each rose 0.2%, while the Dow Jones Industrial Average advanced 0.7%. The S&P 500 recorded its ninth consecutive week of gains, while the Nasdaq posted its strongest two-month performance since November 2002. The Dow also logged its best two-month gain since December 2023.
The latest rally was led by shares of Dell Technologies, which surged 33% after the company reported stronger-than-expected first-quarter earnings and highlighted explosive growth in demand for AI infrastructure.
Dell revealed that revenue from its AI-optimized server business jumped 757% compared with a year earlier, reinforcing investor confidence that spending on artificial intelligence remains a major growth driver for the technology sector.
The strong results sparked a broad rally across AI-related hardware and infrastructure stocks. Shares of Hewlett Packard Enterprise and International Business Machines each climbed 13%, while Super Micro Computer gained 12%.
Data-storage provider NetApp jumped 22% after posting better-than-expected quarterly results, with management citing strong AI-related demand for its products and services.
The continued strength of AI-linked companies has helped fuel Wall Street's record-breaking advance, despite growing concerns among some investors that valuations may be becoming stretched.
Market participants remain willing to support the rally as long as artificial intelligence continues translating into stronger corporate revenue growth and profitability.
Meanwhile, oil prices declined as investors grew optimistic about progress in diplomatic talks between the United States and Iran. U.S. President Donald Trump stated that he would meet with senior officials to make a final determination regarding a potential peace agreement with Iran, raising hopes for reduced geopolitical tensions and improved energy supply stability.
Not all sectors participated in the rally.
Space-related stocks came under pressure following an explosion involving a rocket developed by Blue Origin late Thursday. Shares of AST SpaceMobile fell 15%, while Rocket Lab declined 3.1%. The pullback followed an extraordinary rally that had seen both stocks surge nearly 90% over the previous month amid excitement surrounding the anticipated IPO of SpaceX.
Among software stocks, Palantir Technologies gained 9.2%, extending gains from the previous session as investors continued rotating into AI-focused software names. The broader software sector received additional support after strong earnings from Snowflake earlier in the week.
Cybersecurity company Okta soared 30% after reporting better-than-expected earnings and raising its full-year profit outlook. The results prompted numerous Wall Street analysts to increase their price targets on the stock.
In contrast, shares of SentinelOne fell 8.2% after announcing plans to reduce its workforce by 8% as part of a restructuring effort aimed at increasing investment in artificial intelligence initiatives.
Retail stocks also struggled. Gap dropped 15%, while American Eagle Outfitters declined 12% after reporting disappointing same-store sales figures, raising concerns about consumer spending trends.
The latest session highlighted how AI-related investments continue to dominate market sentiment, with investors rewarding companies demonstrating tangible benefits from the technology while pushing major U.S. indexes to new all-time highs.
Related News: Global Markets, Inflation Pressures & Economic Outlook
Global economies continue to navigate a period of market volatility, inflationary pressures, trade shifts, and rapid technological transformation. From cybersecurity advancements in Japan’s banking sector to inflation surges across Europe and Africa, these developments highlight the interconnected challenges shaping international finance and policy.
Japan Banks Gain Access to OpenAI Cybersecurity AI
Japanese financial institutions are strengthening their cyber defenses after gaining access to advanced AI systems designed to detect and respond to cyber threats more efficiently. The move signals growing institutional reliance on AI for financial security infrastructure.
https://wealthorbitcenter.com/japan-banks-gain-access-to-openai-cybersecurity-ai-to-strengthen-defenses-against-cyberattacks/
German Import Prices Rise at Fastest Pace Since Early 2023
Germany’s import prices have climbed sharply due to higher energy costs, increasing concerns over inflationary pressure and its potential impact on broader eurozone economic stability.
https://wealthorbitcenter.com/german-import-prices-rise-at-fastest-pace-since-early-2023-on-energy-cost-surge/
Kenya Inflation Hits Highest Level Since January 2024
Rising fuel costs have pushed Kenya’s inflation to its highest point in months, adding pressure on consumers and raising concerns about cost-of-living challenges.
https://wealthorbitcenter.com/kenya-inflation-climbs-to-highest-level-since-january-2024-as-fuel-costs-surge/
Nomura Cuts Target on Ashok Leyland
Nomura has lowered its price target on Ashok Leyland amid concerns about slowing commercial vehicle demand, reflecting caution within India’s auto manufacturing sector.
https://wealthorbitcenter.com/nomura-cuts-target-on-ashok-leyland-amid-commercial-vehicle-demand-concerns/
Australian Shares Post Strongest Day in Seven Weeks
Australian markets recorded their best session in nearly two months as progress toward a U.S.–Iran ceasefire boosted investor confidence and improved broader market sentiment.
https://wealthorbitcenter.com/australian-shares-post-best-day-in-seven-weeks-as-u-s-iran-ceasefire-progress-lifts-market-sentiment/
French Inflation Climbs to 2.8% in May
France has seen inflation accelerate due to surging energy prices, intensifying pressure on policymakers and increasing expectations of tighter monetary monitoring.
https://wealthorbitcenter.com/french-inflation-climbs-to-2-8-in-may-as-energy-prices-surge-to-highest-level-in-over-two-years/
France Economy Contracts in Q1
France’s economy contracted by 0.1% in the first quarter as weak household spending and lower exports weighed on growth prospects.
https://wealthorbitcenter.com/france-economy-contracts-0-1-in-q1-as-exports-and-household-spending-weaken/
Global Trade Rankings 2025 Released
The latest global trade rankings show the United States leading imports while China continues to dominate exports, reflecting shifting international supply chain dynamics.
https://wealthorbitcenter.com/global-trade-rankings-2025-u-s-leads-imports-while-china-dominates-exports/
China Coking Coal Prices Post Strong Weekly Gains
China’s coking coal market has shown notable volatility but is heading toward its strongest weekly gain in six weeks amid shifting industrial demand expectations.
https://wealthorbitcenter.com/china-coking-coal-prices-swing-but-head-for-strongest-weekly-gain-in-six-weeks/
World Bank Releases Global Poverty Projections Through 2028
The World Bank’s latest projections offer insight into global poverty trends over the coming years, highlighting both progress and ongoing structural challenges across developing economies.
https://wealthorbitcenter.com/world-bank-releases-global-poverty-projections-through-2028/