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Bullish +75

Stock Market News From May 28, 2026: Dow, Nasdaq, S&P 500 Records

AI-generated analysis

πŸ“ˆ The S&P 500 rose 0.6% and the Nasdaq gained 0.9% to hit fresh closing highs on Thursday.

πŸ€– Software stocks surged following a blowout earnings report from Snowflake, sparking a sector rebound.

πŸ’° The Dow Jones Industrial Average added 25 points to post a slight gain and reach a new record high.

πŸ“‰ Treasury yields slipped with the 2-year note dipping to 4.02% and the 10-year yield falling to 4.45%.

πŸ”₯ Core PCE inflation rose to a 3.3% annual rate in April, up from 3.2% in March.

β›½ Headline PCE inflation jumped to 3.8% from 3.5% due to oil price spikes linked to the Iran war.

πŸ“Š The second estimate for first-quarter GDP growth was revised down to 1.6% from a prior estimate of 2%.

πŸ—£οΈ Raymond James chief economist Eugenio AlemΓ‘n stated that data is not strong enough to justify a December rate hike.

🎲 CME FedWatch Tool shows a 54.3% chance interest rates will hold steady through the end of the year.

πŸ“ˆ Traders see a 36.3% probability of a quarter-point rate hike and a 9.3% chance of a half-point or more.

πŸ’Š Healthcare stocks also had a strong day, though major winners like Eli Lilly were not in the Dow.

πŸš€ The Nasdaq is on pace for its best two-month stretch since 2009 as it enters the final session of May.

πŸ€– Investors are betting that an AI boom will continue to drive stock market performance despite inflation concerns.

πŸ“‰ Market momentum has returned with growth and risk assets flying higher in a renewed rally.

πŸ›οΈ Capital Economics notes that expected inflation is unlikely to override the ongoing AI boom for the stock market.

Bullish Signals
  • Software stocks surged following Snowflake's blowout earnings report, providing a much-needed boost to the sector.
  • The Nasdaq gained 0.9% and hit fresh closing highs, riding a momentum rally in software stocks despite hot inflation data.
  • The S&P 500 rose 0.6% to reach another record high, while the Dow also eked out a fresh record.
  • Treasury yields slipped with the 2-year note dipping to 4.02% and the 10-year yield falling to 4.45%, supporting equity valuations.
  • Capital Economics notes that expected inflation won't override the AI boom for the stock market, highlighting sustained upside potential.
  • The Nasdaq is on pace for its best two-month stretch since 2009 as it enters the final session of May.
  • Raymond James chief economist Eugenio AlemΓ‘n suggests the Fed will remain data-dependent and patient, with traders seeing a 54.3% chance rates hold steady through year-end.
  • Healthcare stocks also had a big day, though the Dow did not include some major winners like Eli Lilly and Gilead Sciences.
  • The Federal Reserve's preferred inflation gauge (core PCE) rose to 3.3%, but markets remain focused on growth catalysts like AI.
  • Traders see a 54.3% chance interest rates hold steady through the end of the year, reducing pressure on equity valuations.
Risk Factors
  • Treasury yields slipped as inflation ticked higher, with core PCE rising to a 3.3% annual rate in April, up from 3.2% in March.
  • The headline PCE rose 3.8% from 3.5% in March following the Iran war oil price spike, indicating persistent inflationary pressure.
  • Second estimate for first-quarter GDP growth was revised down to 1.6%, compared to a prior estimate of 2%, signaling weaker economic activity.
  • Traders see a 36.3% chance of a quarter-point rate hike and 9.3% odds of half-point hikes or more, suggesting potential monetary tightening despite market expectations for patience.
  • The Dow rose only 25 points to post a slight gain, underperforming the Nasdaq and S&P 500 which both hit fresh closing highs.
  • Software stocks rallied on Snowflake earnings, but the sector has taken a beating from investors betting that AI upstarts will make some enterprise software firms redundant.
Full Analysis
Nasdaq Composite and S&P 500 indices reached fresh record highs on Thursday, driven by a significant rally in software stocks following strong earnings from Snowflake. The Nasdaq gained 0.9% while the S&P 500 rose 0.6%, with the Dow Jones Industrial Average also posting a slight gain of 25 points to hit another record high. The market's upward momentum was bolstered by healthcare stocks, although major winners like Eli Lilly and Gilead Sciences were not included in the Dow's calculation. Macroeconomic data presented mixed signals as the Federal Reserve's preferred inflation gauge, the core Personal Consumption Expenditures (PCE) index, rose to a 3.3% annual rate in April, up from 3.2% in March. Headline PCE increased to 3.8%, partly due to oil price spikes linked to geopolitical tensions with Iran. Additionally, second-estimate first-quarter gross domestic product growth was revised down to 1.6% from a prior estimate of 2%. Despite the inflationary pressures, Treasury yields slipped, with the 2-year note dipping to 4.02% and the 10-year yield falling to 4.45%. Market analysts, including Raymond James chief economist Eugenio AlemΓ‘n, suggest that while investors are pricing in a potential rate hike in December, current data may not yet justify such a move, expecting the Fed to remain patient. Traders currently see a 54.3% probability of interest rates holding steady through year-end, with odds of a quarter-point hike at 36.3%. The Nasdaq is on pace for its best two-month stretch since 2009 as it enters the final session of May.