Pre-Market Update: Nine Weeks and Counting — Can the S&P 500 Keep Its Winning Streak Alive?

TLDR

• S&P 500, Nasdaq 100, and Dow futures all rose 0.1–0.2% in pre-market trading Friday
• The S&P 500 is on track for a ninth straight week of gains
• Dell shares surged nearly 40% after earnings beat expectations, boosted by AI server demand
• US-Iran ceasefire talks are lifting market sentiment, but no official deal update has been confirmed
• Inflation remains a key risk, with the PCE index hitting 3.8% in April — its highest in nearly three years

Wall Street is heading into the final trading session of May on a positive note. Futures for the Dow Jones Industrial Average rose 74 points, or 0.2%, while S&P 500 and Nasdaq 100 futures each climbed 0.1%.

If gains hold, the S&P 500 will close out a ninth straight week in the green. That would mark its best two-month run since May 2020. The Nasdaq is also close to recording its best two-month stretch since November 2002.

All three major indexes posted record closing highs on Thursday. A rally in software stocks helped push them over the line.

Dell Earnings Fuel AI Optimism

After the bell on Thursday, Dell reported earnings that blew past analyst expectations. The company’s stock jumped close to 40% in after-hours trading.

Dell pointed to strong demand for its servers, which are powered by Nvidia chips and used to build out data centers for artificial intelligence. The company gave an upbeat outlook, saying AI-driven expansion would continue to fuel orders.

That result added to the broader confidence in the AI trade that has helped lift markets in recent weeks.

Iran Talks Keep Sentiment Steady

Hopes around a US-Iran ceasefire have also been supporting markets. Last week, President Trump said talks were in the “final stages.” Since then, the S&P 500 and Nasdaq have hit record highs three days in a row.

Reports suggest a deal for a ceasefire extension has reached Trump’s desk, but no official confirmation has been issued. Markets are watching closely, as the closure of the Strait of Hormuz has been putting upward pressure on oil prices and stoking inflation concerns.

Oil prices slipped on Friday. Brent crude fell 0.8% to $91.94 a barrel. West Texas Intermediate dropped 0.9% to $88.06.

The 10-year Treasury yield ticked up one basis point to 4.46%. The US dollar was flat against a basket of major currencies.

Inflation Still a Risk

Not everything is clear for bulls. The Federal Reserve’s preferred inflation gauge, the personal consumption expenditures index, hit 3.8% in April. That is its highest reading in nearly three years.

Emily Bowersock Hill, CEO of Bowersock Capital Partners, warned that rate cut hopes are likely to fade if inflation keeps rising. She said that if the Fed were to tighten policy as inflation approaches 4%, both stocks and bonds could suffer, similar to 2022.

For now, traders are watching for any official word on the Iran deal and digesting Dell’s strong results as the month closes out.

The post Pre-Market Update: Nine Weeks and Counting — Can the S&P 500 Keep Its Winning Streak Alive? appeared first on CoinCentral.