Wall Street hits records, Dell soars; ASX set to slip
Damian Troise And Alex Veiga
Wall Street moved further into the record books as major stock indexes continued the market’s recent winning streak and capped solid gains for the month.
The S&P 500 index rose 0.2 percent, winning for the seventh consecutive week and the ninth week in a row, recording its longest winning streak since 2023. The benchmark index reached its all-time high for the fourth day in a row. Dow Jones gained 0.7 percent and Nasdaq composite gained 0.2 percent. The Dow and Nasdaq also reached new highs after hitting record highs earlier in the week.
The Australian share market is poised for a decline, with futures pointing to a loss of 13 points, or 0.2 per cent, at the open on Saturday. The Australian dollar was trading at 71.71¢ at 5.18am AEST.
Big tech stocks are behind much of Wall Street’s record-breaking streak. Expensive stock valuations give them more influence in driving the market higher or lower. In May alone, technology stocks in the S&P 500 rose more than 15 percent while most sectors in the benchmark index actually lost value.
“The rally has been largely technology-led and supported by resilient gains, but the real question is whether it can be sustained,” Angelo Kourkafas, senior global strategist at Edward Jones, wrote in a research note.
Technology stocks also led the market higher on Friday. Microsoft gained 5.4 percent and Broadcom gained 4.7 percent.
Dell Technologies rose 32.8 percent to lead all stocks in the S&P 500 after posting profits that beat expectations. The company also upgraded its outlook, citing strong demand for AI computing.
Most other sectors in the S&P 500 posted losses on Friday. Among the decliners: Paramount Skydance fell 1.9 percent, Amazon.com fell 1.2 percent and Costco Wholesale fell 3.9 percent.
Wall Street is gaining ground despite concerns that a U.S. war with Iran would worsen inflation and jeopardize economic growth.
The United States and Iran are reportedly trying to reach an agreement to extend the ceasefire. This eased the pressure on oil prices. The August delivery price of Brent crude oil, the international standard, decreased by 1.7 percent and settled at $91.12 per barrel. It is still well above $70 a barrel in late February, before the war began. The barrel price of benchmark US crude oil for July delivery fell 1.7 percent to $87.36.
Treasury yields have remained relatively stable as oil prices have fallen. The yield on the 10-year Treasury note fell to 4.44 percent from 4.45 percent at the end of Thursday.
Still, high oil prices remain a major concern for Wall Street. The war blocked the flow of oil shipments through the Strait of Hormuz. Approximately one fifth of the world’s oil and natural gas is transported by water.
This raised the prices of gasoline and a wide range of goods, fueling inflation and squeezing consumers and businesses. Prices were already rising before the war began due to the continuing impact of tariffs.
Many reports this week reflected the rise of inflation and its impact on consumers. The Federal Reserve’s preferred measure of inflation accelerated in April, reaching its highest level in three years. Consumer confidence is falling due to the pressure created by increasing inflation.
Wall Street’s concerns about rising inflation have eased somewhat with the latest corporate earnings reports. Companies in the S&P 500 reported profit growth of 28 percent overall in the latest quarter, according to FactSet. The vast majority of companies in the S&P 500 have already announced their latest results. This could mean investors’ focus could shift back to inflation, consumer behavior and the Fed’s path on interest rates.
The Fed is keeping its benchmark interest rate steady as it closely monitors rising inflation. CME is expected to continue keeping interest rates steady at its next meeting in June and throughout the year, according to the FedWatch tool. Lowering interest rates can help reduce borrowing costs and shake up the economy, but it can also worsen inflation at a time when prices are already high and rising.
Stocks continued their rise in May despite market turmoil caused by conflicts in the Middle East. The S&P 500 closed the month with a 5.1 percent gain. It’s up 10.7 percent so far this year.
Overall, the S&P 500 rose 16.43 points to 7,580.06 points on Friday. The Dow index rose to 51,032.46 points with 363.49 points, and the Nasdaq rose to 26,972.62 points with 55.15 points.
Markets in Europe and Asia were mostly higher.
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