99 Tekno — U.S. stock markets continued their impressive rally on Friday, May 29, 2026, fueled by growing investor optimism surrounding the artificial intelligence (AI) boom and hopes for a de-escalation in tensions between the United States and Iran. Major Wall Street indices hit new intraday record highs, positioning themselves to close both the week and the month in positive territory.
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According to Reuters, as of 10:05 a.m. local time, the Dow Jones Industrial Average climbed 0.30% to 50,820.01. The S&P 500 advanced 0.41% to 7,594.98, while the Nasdaq Composite gained 0.58% to reach 27,073.94. The technology sector spearheaded this upward momentum with a 2.2% gain, primarily driven by strong demand for AI-related chips and server infrastructure.
Dell Technologies saw its shares skyrocket by 34.7% after the company raised its annual revenue and profit forecasts, citing soaring demand for AI-powered servers. This surge was mirrored by other industry players, with Hewlett Packard Enterprise shares jumping 13.6% and Super Micro Computer surging 17%.
Wall Street Opens Higher on Friday Amid Hopes for U.S.-Iran Peace
Reports from Reuters indicate that Washington and Tehran have reached a preliminary agreement to extend a ceasefire and reopen shipping lanes in the Strait of Hormuz. Although U.S. President Donald Trump has yet to grant final approval, this development has significantly bolstered market sentiment, encouraging investors to rotate back into riskier assets.
“The market is closing out May with a risk-on sentiment, pushed by AI enthusiasm, falling oil prices, and the hope that U.S.-Iran tensions can be kept under control,” said BNY Market Macro Strategist Bob Savage.
Despite the prevailing optimism, some investors remain cautious regarding inflation risks tied to Middle Eastern conflicts and the possibility that the Federal Reserve may maintain high interest rates for an extended period. Kansas City Fed President Jeffrey Schmid warned that the recent surge in energy prices might not be merely transitory. Furthermore, Fed Vice Chair Michelle Bowman suggested that persistent inflation could force the central bank to further tighten monetary policy.
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Currently, the money market expects the Federal Reserve to hold interest rates steady for the remainder of the year, though speculation regarding a 25-basis-point hike in December has begun to emerge.
In other market news, the retail sector faced headwinds as shares of clothing retailer Gap Inc. plummeted 17.7% following a downward revision to its annual sales outlook, while American Eagle Outfitters shares fell 14.9%. Conversely, digital identity security firm Okta saw its shares surge 21% after reporting first-quarter earnings that surpassed market expectations.
Summary
U.S. stock markets reached new intraday record highs on May 29, 2026, driven by a surge in the technology sector and optimism surrounding a potential de-escalation in U.S.-Iran tensions. Investors favored riskier assets as reports emerged of a preliminary ceasefire agreement in the Strait of Hormuz, while the AI boom continued to propel demand for semiconductor and server infrastructure companies like Dell Technologies.
Despite the overall positive sentiment, market participants remain cautious regarding persistent inflation risks and the possibility of tighter monetary policy from the Federal Reserve. While high-performing tech stocks and strong earnings reports bolstered the indices, the retail sector faced significant pressure, leading to notable declines for major apparel companies.