US stocks gained strength, adding to their records, as Dell rose

Wall Street advanced to the record books on Friday, as the major stock indexes extended the market’s recent gains and capped a strong month of gains.

The S&P 500 rose 0.2%, looking for its seventh straight gain and ninth consecutive winning week – the longest streak since 2023. The benchmark index hit an all-time high for the fourth day in a row.

The Dow Jones Industrial Average gained 0.7% and the Nasdaq composite added 0.2%. The Dow and Nasdaq also hit new highs after posting record highs earlier in the week.

Major technology stocks were behind record highs in the market. Their expensive stock prices give them more influence in directing the market up or down. In May alone, technology stocks within the S&P 500 rose more than 15%, while most of the benchmark index’s sectors actually lost.

“The rally has been largely tech-led and supported by strong earnings, but the key question is whether it can be sustained,” wrote Angelo Kourkafas, chief global strategist at Edward Jones, in a research note.

Tech stocks also gave the market a boost on Friday. Microsoft rose 5.4% and Broadcom gained 4.7%.

Dell Technologies rose 32.8% to lead all stocks in the S&P 500 after delivering earnings that beat expectations. The company also raised its opinion, citing strong demand for AI computing.

Most other sectors in the S&P 500 lost on Friday. Among the decliners: Paramount Skydance fell 1.9%, Amazon.com fell 1.2%, and Costco Wholesale closed 3.9% lower.

Wall Street continues to rise despite concerns that the US war with Iran is fueling inflation and threatening economic growth.

The US and Iran are reportedly working on an agreement to extend the ceasefire. That puts pressure on oil prices. The price for August delivery of Brent crude, the international standard, fell 1.7% to $91.12 per barrel. It is still above the $70 per barrel level in late February before the war began. The price of a barrel of US crude oil for July delivery fell 1.7% to $87.36.

Treasury yields have held steady as oil prices fall. The yield on the 10-year Treasury fell to 4.44% from 4.45% late Thursday.

Still, high oil prices remain a major concern for Wall Street. The war has blocked the flow of oil shipments through the Strait of Hormuz. About a fifth of the world’s oil and natural gas is shipped by sea.

That has driven up fuel prices and a range of goods, fueling inflation and squeezing consumers and businesses. Prices were already rising before the war started from the continuing cost impact.

Several reports this week pointed to rising inflation and the impact on consumers. The Federal Reserve’s preferred inflation measure rose in April to its highest level in three years. Consumer confidence is falling amid pressures from inflation.

Wall Street’s worries about rising inflation have been muted by recent corporate earnings reports. Companies in the S&P 500 reported a 28% increase in overall profits in the most recent quarter, according to FactSet. Most of the companies in the S&P 500 have reported their latest results. That could mean investors’ focus could shift back to inflation, consumer behavior and the Fed’s forward-looking approach to interest rates.

The Fed has been holding its interest rate steady as it watches for rising inflation. It is expected to hold rates steady at its next meeting in June and for the rest of the year, according to CME’s FedWatch tool. Lowering interest rates can help lower borrowing costs and give the economy a boost, but it can also fuel inflation at a time when rates are already high and rising.

Despite the market turmoil caused by the conflict in the Middle East, stocks did not make any further gains in May. The S&P 500 closed the month with a 5.1% gain. It is up 10.7% so far this year.

Overall, the S&P 500 rose 16.43 points to 7,580.06 on Friday. The Dow gained 363.49 points to 51,032.46, while the Nasdaq added 55.15 points to end at 26,972.62.

Markets in Europe and Asia rose sharply.