Dell beats estimates, AI rally lifts Dow above 51,000

U.S. stocks closed at fresh highs on Friday after Dell Technologies reported stronger-than-expected quarterly results and raised its full-year outlook. The Dow Jones Industrial Average rose 363.49 points, or 0.72%, to 51,032.46. The Nasdaq Composite closed at 26,972.62, up 0.2%, and the S&P 500 finished at 7,580.06, up 0.22%. All three indexes reached intraday record levels earlier in the session.

Dell’s earnings report and higher guidance drove large gains across technology shares linked to artificial intelligence infrastructure. Dell shares jumped about 33%, the largest single-day gain in the company’s history. Chipmakers and software firms that supply AI systems also rose: Micron Technology advanced roughly 5% and Qualcomm climbed about 3% on the day. For May, Micron gained nearly 88% and Qualcomm rose close to 40%. The Technology Select Sector SPDR Fund increased nearly 20% during the month and hit a new 52-week high.

Software stocks moved higher after recent results from Snowflake, which reinforced expectations for increased enterprise spending on AI and cloud infrastructure. Market movement concentrated on companies that provide hardware, chips and cloud services for AI deployments.

Reports said the United States and Iran agreed to a 60-day memorandum of understanding aimed at extending a ceasefire and reopening shipping through the Strait of Hormuz. President Donald Trump posted that he was meeting in the Situation Room “to make a final determination” and wrote that Iran “must agree that they will never have a Nuclear Weapon.” He also wrote that the Strait of Hormuz must be “immediately open.” The prospect of reduced regional tensions pushed oil prices lower: West Texas Intermediate fell 1.73% to $87.36 per barrel and Brent declined 1.77% to $92.05.

Economic data remained in focus. April consumer prices rose at the fastest pace in three years, and first-quarter GDP growth was revised down to an annualized 1.6%. Federal Reserve officials warned that recent energy-driven inflation pressures could persist. Kansas City Fed President Jeffrey Schmid cautioned the latest energy shock may not be temporary, while Fed Vice Chair for Supervision Michelle Bowman said persistent inflation might require tighter policy. Money market pricing implies traders expect the Fed to hold rates steady for much of the year, while leaving some probability of a 25-basis-point hike in December.

Outside technology, communications services underperformed as Alphabet shares fell. Consumer staples declined after losses at Costco and Walmart, and automakers faced pressure following reports the administration seeks an 82% regional content requirement for North American-built vehicles to qualify for USMCA preferences.