On May 28, the Dow Jones Industrial Average rose 24.69 points (0.05%) to close at 50,668.97, according to Reuters. The S&P 500 increased by 43.27 points (0.58%) to finish at 7,563.63, while the Nasdaq climbed 242.74 points (0.91%) to end at 26,917.47.
The driving force behind the gains was the report of a potential extension of the U.S.-Iran ceasefire. Reuters reported that the U.S. and Iran have agreed on a draft to extend the ceasefire for 60 days, pending approval from President Donald Trump. However, Iranian news agency Tasnim noted that the draft has not yet been finalized or confirmed.
The market reacted strongly to the possibility of reduced risks in the Middle East. Recent tensions, including the Iran conflict and disruptions in the Strait of Hormuz, had previously driven up both oil prices and inflation. As hopes for a ceasefire extension grew, concerns over energy-driven inflation eased, reviving interest in riskier assets.
However, economic indicators remain a concern. The Personal Consumption Expenditures (PCE) price index for April rose at its fastest pace in three years. Additionally, the first-quarter GDP growth rate was revised down to an annualized 1.6%. With growth slowing and inflation remaining high, the Federal Reserve faces increased pressure regarding its monetary policy.
Sector-wise, technology and healthcare stocks contributed significantly to the index gains. Microsoft shares rose 3.5% following reports of a new coding model launch. Eli Lilly gained 4% after CVS Health announced it would resume coverage for the obesity treatment, Zepbound.
Snowflake's stock surged 36% after it raised its annual product revenue outlook and announced a $6 billion AI infrastructure contract with Amazon Web Services (AWS) over five years. Dollar Tree shares jumped nearly 18% after raising its annual profit forecast, while Best Buy's stock rose 15.8% as its second-quarter sales outlook exceeded market expectations.
International oil prices showed mixed results. West Texas Intermediate (WTI) crude oil closed up 0.25% at $88.90 per barrel, while Brent crude fell 0.62% to $93.71 per barrel. The yield on the 10-year U.S. Treasury note decreased to 4.453%, and the dollar index fell 0.27% to 99.02.
* This article has been translated by AI.
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