Wall Street stocks surged on Friday, extending all-time highs achieved a day earlier, driven by technology. Dell Technologies is an American multinational technology company. It specialises in computers and related products and services. Dell saw its shares rocket 31.4 per cent after delivering profit figures that surpassed expectations and an uplifted outlook, citing robust demand for artificial intelligence computing. Other tech giants contributed, with Microsoft climbing 3.6 per cent and Broadcom adding 2.4 per cent.
The consistent performance of big technology stocks has been the primary engine behind the market’s recent record-breaking streak, their valuations granting them sway. In May alone, technology stocks within the S&P 500 posted gains exceeding 15 per cent, even as most other sectors experienced losses. Angelo Kourkafas, a senior global strategist at Edward Jones, noted, “The rally has been largely tech-led and supported by resilient earnings, but the key question is whether it can be sustained.”
Market advancements occurred despite geopolitical concerns, particularly the US war with Iran, fuelling inflation fears. However, reports of the US and Iran working towards extending a ceasefire helped ease pressure on oil prices. Brent crude dipped 1.7 per cent to US$91.12, and US crude fell 1.7 per cent to US$87.36. Despite declines, prices remain above pre-conflict US$70, with high oil prices a key investor concern. The 10-year Treasury yield held steady at 4.45 per cent.
While robust corporate profit reports, with S&P 500 companies showing 28% growth, somewhat muted inflation worries, recent data highlighted persistent inflation and consumer impact. A Federal Reserve-preferred inflation measure accelerated in April to a three-year high, eroding consumer confidence. With most earnings results now in, investor focus may shift back to inflation, consumer behaviour, and the Federal Reserve’s path for interest rates.
