U.S. stocks traded higher on Friday as optimism around a potential U.S.-Iran truce and enthusiasm for AI infrastructure spending followed Dell Technologies’ blockbuster earnings report. The Dow Jones Industrial Average gained roughly 0.6%, while the S&P 500 and Nasdaq Composite also rose as Wall Street hovered near record territory.
Markets have steadily rallied over the past week amid growing expectations that negotiations between Washington and Tehran could result in a temporary ceasefire agreement and a reopening of the Strait of Hormuz. Investors also welcomed easing oil prices, which helped calm concerns that escalating energy costs could further complicate the Federal Reserve’s inflation fight just as new Fed Chair Kevin Warsh prepares to lead the central bank through an uncertain macro backdrop.
Market Movers:
- Dell Technologies (DELL) +29%: Shares surged after the company delivered a major earnings beat and sharply raised its fiscal 2027 outlook, highlighting explosive demand for AI servers powered by Nvidia chips. Dell said it now expects $167 billion in annual revenue, including roughly $60 billion tied directly to AI server sales, reinforcing investor confidence in the next leg of the AI infrastructure boom.
- Palantir Technologies (PLTR) +9%: Palantir rallied after Dell’s strong AI outlook boosted sentiment around the companies’ recently announced partnership focused on enterprise AI deployments. Investors increasingly view Palantir as a key software beneficiary of expanding AI infrastructure spending as corporations seek integrated data and AI platforms.
- NVIDIA (NVDA) +1%: Nvidia shares climbed as Dell’s results reinforced expectations for sustained demand across AI data centers and accelerated computing infrastructure. The chipmaker continues to benefit from broad enterprise and hyperscaler spending tied to generative AI expansion.
- AST SpaceMobile (ASTS) -18%: Shares plunged after Blue Origin’s New Glenn rocket exploded during a launchpad test at Cape Canaveral, sparking a broad sell-off across speculative space stocks. Investors rotated out of high-flying aerospace names following weeks of sharp gains tied to enthusiasm around SpaceX’s upcoming IPO.
- Rocket Lab (RKLB) -6%: Rocket Lab declined alongside the broader space sector as concerns about launch reliability and elevated valuations weighed on investor sentiment. The pullback comes after a powerful rally across commercial space and satellite companies earlier this month.
Dell Earnings Reignite the AI Trade
The biggest catalyst for Friday’s rally came from Dell’s earnings report, which added momentum to the AI infrastructure trade that has driven much of the market’s gains this year. Investors cheered the company’s aggressive revenue forecast increase and growing backlog of AI server orders tied to enterprise and hyperscale customers.
Dell’s results also reinforced broader optimism around the semiconductor ecosystem, particularly for companies supplying AI chips, networking equipment, and cloud infrastructure. The report helped validate expectations that enterprise AI spending remains in the early stages despite mounting concerns about valuations across the technology sector. The ripple effects extended across software and infrastructure names connected to AI deployments, with investors betting that corporate demand for data centers and AI-enabled applications will continue accelerating into 2027.
Oil Prices Fall as Iran Ceasefire Hopes Build
Energy markets also helped support equities after crude oil prices extended recent declines. Brent crude fell below $92 per barrel while West Texas Intermediate crude traded under $88 as investors grew more optimistic that a temporary diplomatic framework between the U.S. and Iran could soon be finalized. President Trump said Friday that he would soon make a “final determination” regarding the proposed memorandum agreement.
Reports indicate the framework could reopen commercial shipping through the Strait of Hormuz while extending the current ceasefire and launching broader negotiations around Iran’s nuclear program. The prospect of easing tensions helped calm fears about a prolonged energy shock that could reignite inflation pressures across the global economy. However, energy executives continue warning that low inventories and tight supply conditions could still drive another spike in oil prices later this summer.
Investors Continue Watching Inflation and the Fed
Despite improving market sentiment, investors remain focused on inflation risks and the Federal Reserve’s next moves. Elevated oil prices over recent months have already raised concerns that inflation could remain stubbornly high, potentially delaying interest rate cuts or even reopening discussions around future hikes.
At the same time, Wall Street continues to weigh whether the current AI-driven rally can sustain its momentum as valuations across large-cap technology stocks climb to increasingly aggressive levels. Analysts have pointed to strong earnings growth and expanding corporate AI spending as key factors supporting the market’s resilience. Meanwhile, geopolitical uncertainty in the Middle East remains an ongoing wildcard, particularly given the importance of the Strait of Hormuz to global energy markets.
Looking Ahead
Investors will now turn their attention toward any official announcement regarding a U.S.-Iran agreement, as well as upcoming inflation and labor market data that could shape expectations for Federal Reserve policy in the second half of the year. At the same time, the market’s AI trade continues to broaden beyond semiconductors into enterprise software, infrastructure, and data center plays following Dell’s strong report. If corporate spending trends remain intact and geopolitical tensions continue easing, Wall Street could see further momentum heading into June — though volatility tied to energy prices and global politics is likely to remain a major factor.