U.S. stock benchmarks closed at fresh intraday records on Friday, completing a strong stretch for equities with technology companies again doing much of the heavy lifting. The S&P 500 rose 0.22% to 7,580.06, the Nasdaq Composite gained 0.2% to 26,972.62, and the Dow Jones Industrial Average climbed 363 points, or 0.72%, to 51,032.46. All three indices touched new intraday all-time highs during the session.
One of the market’s most notable moves came from Dell Technologies, whose shares jumped nearly 33% in what the company recorded as its biggest single-day advance on record. The stock reaction followed a first-quarter report that exceeded expectations on both revenue and earnings and included an upgraded full-year outlook.
Performance over shorter horizons highlighted the concentration of recent strength. For the week, the Nasdaq led gains with an increase of more than 2%, the S&P 500 rose by more than 1%, and the Dow advanced just under 1%. Month-to-date figures for May showed the Nasdaq climbing more than 8%, the S&P 500 finishing roughly 5% higher, and the Dow advancing nearly 3%.
What’s next
Market attention now turns to a heavy slate of data and corporate results that could test whether the rally has staying power. Foremost among those items is the May employment report, due Thursday, which a Reuters poll projects will show the economy added 85,000 jobs and that the unemployment rate held at 4.3%. Investors will scrutinize that number for signs about the balance between labor-market resilience and inflationary pressure, given how such dynamics could affect interest-rate expectations.
Also on tap next week is Broadcom’s quarterly earnings release, due Wednesday. The report will be watched closely as an indicator of sentiment around investment in AI infrastructure, a theme that has helped spur strength across semiconductor stocks in recent weeks. Hewlett Packard Enterprise, Palo Alto Networks and CrowdStrike are likewise scheduled to report results in the coming days.
Inflation data released Thursday added to the backdrop of uncertainty. The Personal Consumption Expenditures price index rose 3.8% in the 12 months through April, the largest 12-month increase since May 2023, with higher energy costs tied in part to the conflict in the Middle East contributing to the uptick. The Federal Reserve tracks the PCE measure as its key benchmark in pursuit of a 2% inflation objective.
Additional reports on manufacturing and services-sector activity are due next week, followed by a separate inflation reading the week after. Those releases are part of the final set of major data points ahead of Federal Reserve Chair Kevin Warsh presiding over his first policy meeting on June 16-17.
Analyst perspectives
JPMorgan: "We fundamentally remain cautious on AI cannibalisation trades, as per our Year Ahead, but tactical stabilisation remains likely. While we do not necessarily expect the repeat of 2025, when the rally was almost exclusive to Mag-7 for most of 2nd half, we believe there is more upside for Mag7 over the next months, as earnings are more than compensating for the stocks rebound. We also find EM memory trade has legs, as meaningful supply additions are not coming before the start of 2028."
RBC Capital Markets: "Following the outperformance that the US saw after the war began, the U.S./non-U.S. P/E has now moved back to levels in line with the five-year average but doesn’t look highly stretched yet. On a 20-year time frame, the U.S./non-U.S. relative P/E has moved up but is not yet back to past highs. This tells us there is still some room for the US to outperform non-U.S."
Evercore ISI: "The S&P 500 is becoming a market of stocks. Record concentration in handful of AI names is spurring index strength and subduing the side effects of a challenging geopolitical/consumer backdrop. Heightened index exposure to a select few names in one theme can also accentuate downside. But with valuations for the U.S. tech sector historically subdued relative to the broader index, focus remains on EPS durability which 1Q26 confirmed is exceptionally strong."
Implications for sectors
Technology and semiconductor companies have been the primary beneficiaries of the recent rally, with notable upside tied to expectations for demand related to AI infrastructure. More broadly, cyclical sectors sensitive to interest-rate movements and energy-price shifts may face pressure if inflation readings prompt a reassessment of monetary policy expectations. Corporate results from cybersecurity and enterprise hardware vendors next week will provide additional clarity on demand trends across segments tied to digital infrastructure and business spending.
Bottom line
Equity markets enter next week on a cautiously optimistic note after another session of record intraday highs. Still, incoming economic data and a cluster of tech-related earnings, most notably Broadcom’s report, will be key tests of how sustainable the current advance is amid renewed inflation signals and ongoing geopolitical-driven energy-price volatility.