The holiday-shortened week was fueled by AI optimism, easing oil prices, and ongoing developments between the U.S. and Iran. Stocks started the week mixed, as investors monitored geopolitical headlines, though strength in semiconductor shares helped the S&P 500 Index (SPX) and Nasdaq Composite Index (IXIC) secure fresh record closes on Tuesday. Momentum accelerated midweek, as Treasury yields and crude prices cooled, with the SPX and Nasdaq extending their record runs, while the Dow Jones Industrial Average (DJI) joined the record-setting party on Wednesday.
All three benchmarks continued to hit all-time highs through the remainder of the week. Investors also unpacked fresh inflation data and a steady stream of ceasefire-related headlines, with the personal consumption expenditures (PCE) price index marking its highest annual rate since 2023, while artificial intelligence remained a key source of market optimism.
At last look the SPX and Nasdaq are on track for a seventh-straight gain, while the Dow, SPX, and Nasdaq are all headed for weekly wins. The SPX is also eyeing its ninth-straight weekly advance, its longest streak since 2023.
Earnings Winners & Losers
Investors unpacked a steady stream of earnings reports this week. Abercrombie & Fitch (ANF) rallied after a first-quarter beat, while Best Buy (BBY) extended a breakout after topping revenue and profit expectations. On the other hand, Zscaler (ZS) rattled the cybersecurity sector after issuing disappointing guidance, sending the shares sharply lower, while American Eagle Outfitters (AEO) plummeted after a mixed report.
Dell Technologies (DELL) soared to record highs after an AI-driven earnings triple play. Looking ahead to next week, Hewlett Packard Enterprise (HPE) options traders are bracing for a sizable post-earnings move.
AI, Quantum, and Space Stocks Stay Hot
Micron Technology (MU) stole the spotlight with a rally that pushed its market capitalization above $1 trillion for the first time, helping drive the Nasdaq and SPX to fresh records. Intuitive Machines (LUNR) surged to fresh three-year highs amid renewed enthusiasm for the space sector.
Quantum computing stocks also remained in focus, with D-Wave Quantum (QBTS) and other sector favorites drawing attention after major bull gaps. Nuclear-energy play Oklo (OKLO) broke out after receiving a Department of Energy nod, while Red Cat Holdings (RCAT) rallied on reports the Trump administration eyes the drone industry.
Next week will bring several closely watched economic reports, including May jobs data and fresh readings on manufacturing and services activity. On the earnings front, Broadcom (AVGO), CrowdStrike (CRWD), Dollar General (DG), GitLab (GTLB), Lululemon Athletica (LULU), and DocuSign (DOCU) are among the companies scheduled to report. In the meantime, take a look at what historically high bond yields could mean for stocks, as well as how the SPX has historically performed after extended winning streaks.