Markets Reach New Peaks as Technology Earnings Impress

Major US stock indices ended last week at fresh record highs, driven by another wave of enthusiasm surrounding artificial intelligence and enterprise technology spending. While investors continued to rotate into AI-linked names, easing geopolitical concerns weighed on oil prices, creating a mixed backdrop across asset classes.
The Dow Jones Industrial Average gained 0.7%, while both the S&P 500 and Nasdaq Composite added 0.2%. The gains capped a strong month for US equities, with all three benchmarks posting solid advances during May. The S&P 500 also notched its ninth consecutive weekly gain, highlighting the resilience of the current bull run despite elevated valuations and lingering uncertainty around interest rates.
The standout performer was Dell Technologies, whose shares surged nearly 32% after the company delivered better-than-expected earnings and raised its forward guidance. Management cited rapidly growing demand for AI infrastructure, servers, and enterprise computing solutions, reinforcing the market's conviction that the AI investment cycle remains in its early stages.
Microsoft also rallied 5.5%, benefiting from continued investor confidence in its AI strategy and cloud computing business. However, some of the largest technology names experienced modest profit-taking as traders locked in gains following recent rallies.
Earnings season continued to drive sharp stock-specific moves. Gap fell 15%, American Eagle Outfitters lost roughly 12%, and SentinelOne declined 8% after disappointing investors. On the positive side, NetApp surged 26%, PagerDuty jumped 33%, and Okta climbed nearly 30% after all three companies reported results that comfortably exceeded expectations.
Oil Falls on Hopes of Iran Agreement
Energy markets moved in the opposite direction. Oil prices declined after comments from US President Donald Trump suggested that a final decision could be approaching on a proposal aimed at reducing tensions with Iran.
The prospect of improved geopolitical relations raised hopes that additional crude supplies could eventually return to global markets, placing downward pressure on prices.
West Texas Intermediate crude settled 1.7% lower at $87.75 per barrel, while Brent crude fell 1.8% to close at $92.05 per barrel.
The decline in oil came despite ongoing concerns about global supply constraints, highlighting how sensitive energy markets remain to geopolitical developments.
Bonds Rise While Gold Extends Gains
In fixed-income markets, the yield on the benchmark 10-year US Treasury note climbed above 4.45%, reflecting ongoing uncertainty regarding the future path of Federal Reserve policy.
Gold continued to attract safe-haven demand, rising 1.2% to $4,585 per ounce. Bitcoin remained relatively stable around $73,600, while the US Dollar Index slipped 0.2% to 98.87.
However, the start of the new week brought a reversal for gold. The precious metal came under pressure as oil prices rebounded and investors reassessed inflation risks. Stronger energy prices increased concerns that inflation could remain elevated, potentially forcing central banks to maintain restrictive monetary policies for longer than previously expected.
At the same time, a firmer US dollar reduced the appeal of gold for international buyers. Gold futures for August delivery fell 0.95% to $4,549.50 per ounce, while spot gold eased to $4,521.17.
Other precious metals showed greater resilience. Silver rose 0.75%, platinum gained 1.5%, and palladium advanced 1.25%, supported by industrial demand and ongoing market uncertainty.
Gold's Long-Term Story Remains Intact
Despite the short-term pullback, many analysts remain constructive on gold's longer-term prospects. Continued central bank purchases, persistent geopolitical uncertainty, and gold's role as an inflation hedge continue to provide structural support.
Some market observers believe that a combination of declining real interest rates, renewed monetary easing, and sustained demand from central banks could push gold significantly higher over the next two years. Forecasts for prices reaching $5,500 per ounce by the end of 2026 are becoming increasingly common among bullish analysts.
Market Outlook
Investors begin the week focused on manufacturing purchasing managers' index (PMI) data from the United States and other major economies, which could offer fresh insight into the strength of global economic activity.
Markets will also continue to monitor developments surrounding US-Iran negotiations, as any breakthrough could have significant implications for oil prices, inflation expectations, and broader risk sentiment.
For equities, the spotlight remains firmly on artificial intelligence and technology stocks following another round of strong earnings results. Continued evidence of enterprise AI spending could provide further support for the sector, although elevated valuations leave little room for disappointment.
Meanwhile, gold and oil are likely to remain highly sensitive to both geopolitical headlines and shifts in interest-rate expectations. A stronger dollar and rising bond yields may create short-term headwinds for precious metals, but the longer-term bullish case for gold remains supported by central bank demand and persistent geopolitical uncertainty.