Wall Street Hits Records on Tech, AI

Wall Street's main indexes, including the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average, hit record closing highs on Friday, posting weekly and monthly gains. This rally was largely fueled by strong tech earnings, particularly from Dell Technologies which surged 32.8% after raising its forecasts, and renewed optimism around AI. Other tech companies like Hewlett-Packard, Supermicro, and Microsoft also saw significant gains. However, the market also faced concerns about the Iran war's impact on inflation and the global economy, with investors awaiting details on a potential US-Iran deal. President Donald Trump indicated he would make a final decision on the deal. Economic data showed inflation increased at its fastest pace in three years in April, and Q1 GDP was revised lower. United States — Federal Reserve officials, Jeffrey Schmid and Michelle Bowman, warned about persistent inflation. The S&P 500 communications services sector dropped due to Alphabet Inc.'s decline, and consumer staples like Costco and Walmart were weak. Automaker stocks, including General Motors and Stellantis, fell due to reports about potential changes to the United States–Mexico–Canada Agreement. Retailers Gap Inc. and American Eagle Outfitters also saw significant drops after their respective earnings and forecasts.