Markets are ending May with a strange but powerful mix: huge enthusiasm for AI-linked companies, relief over lower oil prices, and a broader rally that has spread well beyond tech. The result is a market that looks confident.
Romain Fournier
Published on 05/29/2026 at 08:57 am EDT – Modified on 05/29/2026 at 09:09 am EDT
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May is coming to an end on markets, and it is time to take stock of what the month has delivered. Dell jumped 39% after hours after reporting results and raising its guidance. The company is worth about $206 billion, which means it could be closer to $280 billion when trading opens on Wall Street. Anthropic, the private AI group behind Claude, has raised funds at a valuation of $965 billion, just above OpenAI’s latest valuation. SpaceX has reportedly trimmed its valuation target for next month’s planned IPO: the new goal is said to be closer to $1.8 trillion than the hoped-for $2 trillion. Given that people were still talking about $1 trillion only a few months ago, this is the kind of downgrade most companies would frame and hang in reception.
The common thread linking Dell, Anthropic, and SpaceX is their close connection to AI. Yet exuberance is not limited to that part of the market. Yesterday, discount retailer Dollar Tree and electronics chain Best Buy each surged more than 15% after their results. In short, there is action almost everywhere.
The S&P 500 gained 4.9% in May and is up 10.5% in 2026. That still leaves it well behind Japan, which rose 9.4% in May and 28.4% this year. But both have been flattened by South Korea, up 24% in May and 94% in 2026. Oil is down 17% in May, helped by hopes of easing tensions in the Middle East. That is good news for the economy, although crude remains up 50% this year. Gold is down 2.5% for the month and is now up only 4.4% in 2026. Bitcoin fell 4% in May and is down 16% for the year.
Today, investors are buying the idea that the Middle East may be stepping back from the edge. The S&P 500, Nasdaq, and Dow all moved higher as reports of a tentative U.S.-Iran agreement gave markets something they badly wanted: a reason to worry a little less. The reported deal would extend the U.S.-Iran ceasefire by 60 days and ease restrictions on shipping through the Strait of Hormuz, one of the world’s most important oil routes. Brent crude fell to about $91 a barrel, while West Texas Intermediate dropped to around $88.
Still, the ceasefire story comes with several asterisks. Donald Trump has not yet approved the memorandum. Iran has not formally responded to the latest version. Vice President JD Vance said talks are progressing but remain ongoing, while Treasury Secretary Scott Bessent described the negotiations as a continuing back-and-forth. There are also hard reminders that this is not a done deal. Iran reportedly fired missiles at unidentified targets on Thursday. The Pentagon said Iran launched a ballistic missile toward Kuwait and used attack drones in the Strait of Hormuz.
Today’s company news shows the AI narrative is still strong. As I mentioned above, Dell surged after raising its full-year revenue and profit forecasts, a sign that the AI infrastructure boom still has plenty of market power behind it. Hewlett Packard Enterprise and Super Micro Computer rallied too.
But not every corner of the economy looks so confident. The Gap shares fell sharply after the retailer cut its annual sales forecast, pointing to pressure on budget-conscious consumers. Costco, meanwhile, reported higher fiscal third-quarter earnings and revenue, offering a more stable read on consumer spending. The company is often treated as a rough thermometer for the American household. Its results suggest consumers are still spending, especially where they see value.
Today’s economic calendar gives investors more to chew on. The April trade-in-goods report is expected to show the deficit narrowing slightly to about $87 billion from $87.4 billion. The Chicago purchasing managers index is expected to rise to 50.3 from 49.2, which would put it just above the line separating contraction from expansion. Several Fed officials are also speaking today, including Michelle Bowman, Anna Paulson, Neel Kashkari, and Mary Daly.
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