Dell Results, Peace Talks Provide Small Early Lift
Published as of: May 29, 2026, 9:09 a.m. ET
Listen to this article
Listen here or subscribe to the Schwab Market Update in your favorite podcast app.
| The markets | Last price | Change | % change |
|---|---|---|---|
| S&P 500® Index | 7,563.63 | +43.27 | + 0.58% |
| Dow Jones Industrial Average® | 50,668.97 | +24.69 | +0.05% |
| Nasdaq Composite® | 26,917.47 | +242.73 | +0.91% |
| 10-year Treasury yield | 4.44% | -0.01 | -- |
| U.S. Dollar Index | 99.05 | +0.04 | +0.04% |
| Cboe Volatility Index® | 15.72 | -0.02 | -0.13% |
| WTI Crude Oil | $87.80 | -$1.10 | -1.23% |
| Bitcoin | $73,490 | -$130 | -0.18% |
(Friday market open) Today's light schedule belies a packed start to June filled with technology earnings and jobs data. Major indexes were up early and on pace for another positive week as they continue forging record highs, fueled by robust corporate growth. Solid results from Dell Technologies (DELL) late Thursday that catapulted shares more than 30% could be a tailwind for tech, and investors also await details of a possible peace deal.
Crude oil fell early along with Treasury yields. While both are down this week, they're still at levels that could drag stocks. "Yields are likely to remain elevated across the curve," said Cooper Howard, director of fixed income research and strategy at the Schwab Center for Financial Research (SCFR), noting concerns about U.S. fiscal sustainability and elevated inflation. In remarks today, Kansas City Fed President Jeff Schmid called inflation the "most pressing" risk to the economy, Bloomberg reported.
On Thursday, major indexes recovered from Wednesday's pause as investors absorbed a host of data and earnings. The numbers presented a mixed economic picture, but weakness at the start faded as buyers bought the dip, especially in chips. Healthcare ended up leading all sectors, though the rally was mainly a "risk-on" affair as volatility declined.
To get the Schwab Market Update in your inbox every morning, subscribe on Schwab.com.
Three things to watch
- Earnings spotlight to shine on tech: Next week brings several critical earnings reports, arguably none bigger than Broadcom (AVGO) on Wednesday after the close. A member of Wall Street's "trillion-dollar club," shares have flattened over the last month after an epic April rally. Like other major chip firms, Broadcom's results can give investors insight into the pace of hyperscaler AI spending. Last time out, Broadcom said it expected more than $100 billion in AI chip revenue next year. Another one to watch next week is Palo Alto Networks (PANW), with cybersecurity stocks in the spotlight amid the push and pull of weakness in software but rising demand for security as AI usage rises dramatically. Palo Alto shares are on an epic ride over the last month along with competitor CrowdStrike (CRWD) as investors seem to be betting that the usage case for these companies might stand apart from any of the software industry's AI-related struggles. There's also a burgeoning trend toward rebalancing within tech after software dove and chips soared the last two months. Palo Alto reports Tuesday afternoon.
- Possible jobs implications from PCE/GDP: The government's second estimate for first quarter GDP of 1.6% annualized—down from the first estimate of 2%—might have disappointed those looking for a stronger economy. The data is in the realm of analysts' current estimates for second quarter annualized GDP growth, too, and well below levels that economists would deem robust. But perhaps the bright side of weaker GDP growth is that it might mean less inflation pressure, though the question is how it might affect jobs. If it's followed by a weak May nonfarm payrolls result next Friday, investors might get concerned about consumer spending and how long it can stay resilient. The savings rate has fallen and credit card delinquencies are up, signs the consumer may be getting extended. Thursday's data showed personal income flat in April while personal spending rose a large 0.5%, suggesting wages may be stagnant, though one report isn't a trend. It puts additional focus on the wages metric of nonfarm payrolls and suggests the "low fire, low hire" economy that tends to suppress wage growth may have continued last month.
- Vehicles stall: While shares of General Motors (GM) and Ford (F) are on the upswing over the last few weeks, it's not necessarily due to rising demand for their vehicles. Americans are on pace to buy about 16 million cars and trucks this year, down from the recent annual pace of near 17 million, The Wall Street Journal reported this week. High gas prices, rising vehicle costs, and better vehicle quality all contribute. The average vehicle on U.S. roads now is 13 years old, the highest ever. Car companies can profit despite lower volume by focusing on expensive SUVs and big trucks, feeling less incentive to discount than in the past, the paper reported. Almost 50% of U.S. car sales now go for $45,000 or more, up from about 25% in 2019. In April the weaker trend continued, according to data this week, with spending on motor vehicles down 7.1% annually to mark the eighth straight month of declines. This is bad news not just for the big automaker stocks, but potentially for shares of industry-dependent companies like parts suppliers for the major manufacturers, including chip makers. The corollary is that with the average car so old, people might start to face the inevitable and give up their jalopies. But that could hinge on inflation cooling.
On the move
- Dell jumped 33% after easily topping earnings consensus and issuing better-than-expected guidance. Quarterly revenue grew 88% year over year. The company booked $24.4 billion in AI orders, raised full-year guidance, and hiked its AI server revenue expectations for fiscal 2027 to $60 billion. "The AI opportunity shows no signs of slowing," the company said in its release.
- Shares of computer companies that compete with Dell also climbed this morning thanks to Dell painting a positive fundamental picture. Hewlett Packard Enterprise (HPE) jumped 13.7% and Super Micro Computer (SMCI) got an 8.6% early lift.
- Tech stocks generally took a positive track early, propelled by the Dell rally. Major tech shares moving higher included IBM (IBM), Arm Holdings (ARM), and Qualcomm (QCOM). Nvidia (NVDA), a laggard all week, continued to lag.
- Autodesk (ADSK) tumbled 7% despite the software firm rolling out earnings that topped consensus and issuing guidance that mostly exceeded expectations. Shares might be dragged by a slight miss in quarterly "ex-subscription revenue," CNBC reported, and by the company paying $3.6 billion for maintenance and operations software firm MaintainX.
- AST SpaceMobile (ASTS) plunged 13% ahead of the open and other space-related stocks also fell after Blue Origin's rocket blew up yesterday during a test, reinforcing the challenges that go with this sector.
- Okta (OKTA) soared more than 8% in early trading after the cloud software company's quarterly results impressed and it offered guidance for above-consensus fiscal year revenue.
- Gap (GAP) tumbled 15% despite better-than-expected earnings. Participants reacted to the company's trimmed annual sales guidance. Poor demand in the women's dress category hurt quarterly results, the company said.
- American Eagle Outfitters (AEO)—another apparel seller—fell 11% after the company said sales at stores open a year or more fell 2% annually at its namesake brand.
- Despite weakness at Gap and American Eagle, consumer discretionary is the leading S&P sector over the last five days as retail earnings season winds down. Consumer spending looked resilient in yesterday's data, and many companies said on their calls that the war and higher gas prices haven't hurt demand in a major way.
- Technically, major support is well below current levels at around 7,275 for the S&P 500 Index. Below that there's support at 7,140 and 7,000. A break below those zones could lead to a faster pickup in volatility and downside pressure.
More insights from Schwab
On Investing: In this week's On Investing podcast, Schwab's Chief Investment Strategist Liz Ann Sonders and Head of Fixed Income Research and Strategy Collin Martin discuss what to expect from the Fed in coming months, recent consumer behavior, and which data to monitor next week. Purchasing managers indexes and job cut reports get particular attention.
Overnight crypto trading arrives: Citing investor demand, the CME Group will offer trading of their suite of cryptocurrency options and futures on the CME Globex exchange 24 hours per day, seven days per week beginning at 5:30 p.m. ET today. Schwab customers with futures-approved trading accounts will be able to take advantage of the new trading hours on some of these products as soon as they launch.
Chart of the day
Data sources: S&P Dow Jones Indices. Chart source: thinkorswim® platform.
Past performance is no guarantee of future results.
For illustrative purposes only.
With the S&P 500 Index (SPX—candlesticks) at all-time highs, there's no straight-out resistance above. At these levels, the index is roughly 7% above its 50-day moving average (blue line) less than two months after trading below it, a sign of possible overbought conditions. The Relative Strength Index (RSI—bottom chart) is above 70, a traditional overbought signal as well.
The week ahead
Check out the investors' calendar for a summary of the top economic events and earnings reports on tap this week.
June 1: April construction spending, May ISM Manufacturing PMI®, and expected earnings from Hewlett Packard Enterprise (HPE)
June 2: Expected earnings from Dollar General (DG), Palo Alto Networks (PANW), and Ulta Beauty (ULTA).
June 3: April factory orders, May ISM Services PMI®, and expected earnings from Medtronic (MDT), Macy's (M), Broadcom (AVGO), and CrowdStrike Holdings (CRWD).
June 4: First quarter nonfarm productivity and expected earnings from Ciena (CIEN), Planet Labs (PL), and Lululemon Athletica (LULU).
June 5: May nonfarm payrolls, unemployment, and wages.