4:15pm: Winning month
Stocks wrapped up a strong month on Friday with all three major US indexes finishing higher and setting fresh records, as investors continued to ride the artificial intelligence-fueled rally while keeping a close eye on President Donald Trump's expected decision regarding Iran.
The Dow Jones led the gains, rising 363 points, or 0.7%, to close at a record 51,032, marking the first time in history the blue-chip index has finished above the 51,000 milestone. The S&P 500 added 16 points, or 0.2%, to end at 7,580, while the Nasdaq Composite gained 55 points, or 0.2%, to close at a record 26,973.
Friday's advance capped off an impressive month for Wall Street. The Nasdaq surged roughly 8% in May, driven by continued enthusiasm surrounding artificial intelligence and strong earnings from technology companies. Meanwhile, the S&P 500 extended its winning streak to nine consecutive weeks, its longest stretch of weekly gains since 2023.
Investors remained focused on geopolitical developments heading into the weekend, particularly the White House's next move on Iran, though optimism around AI-driven growth continued to underpin market sentiment.
With fresh records across all three major benchmarks and momentum firmly intact, Wall Street heads into June on a strong footing after one of its best months of the year.
3:40pm: Proactive news headlines
- Power Metallic Mines Inc (TSX-V:PNPN, FRA:IVV1, OTCQB:PNPNF) increased its previously announced private placement from C$25 million to C$30 million, citing strong investor demand for the financing.
- Sonoro Gold Corp (TSX-V:SGO, OTCQB:SMOFF, FRA:23SP) expanded its non-brokered private placement to 60 million units for gross proceeds of up to C$15 million in response to strong investor interest.
- Replenish Nutrients Holding Corp (CSE:ERTH, OTC:VVIVF, FRA:7KE) said it is nearing full commercial-scale production at its Beiseker, Alberta fertilizer facility while advancing production expansion and licensing initiatives.
- New Era Energy & Digital (NASDAQ:NUAI) reached a pending settlement with the State of New Mexico that would dismiss all claims against the company through a proposed $1 million bankruptcy-related agreement.
- First Phosphate Corp. (CSE:PHOS, OTCQX:FRSPF, FRA:KD0, OTC:FPHOY) announced a non-brokered private placement targeting at least $5 million in gross proceeds through the sale of hard-dollar units and flow-through shares to existing investors.
2:40pm: Market movers
- Reddit Inc (NYSE:RDDT) shares climbed about 4% after Shopify expanded its integration with the social media platform from testing to general availability, a move analysts said could boost lower-funnel advertising growth and attract more merchants to Reddit’s ad platform.
- Mercury Systems Inc (NASDAQ:MRCY) secured its largest-ever production order for its Common Processing Architecture after winning a multi-year contract to deliver 1,000 RTBX06 BuiltSECURE servers to defense distributor Blue Raven.
- American Eagle Outfitters Inc. (NYSE:AEO) posted first-quarter results that beat Wall Street estimates, but its tariff-related outlook for fiscal 2026 pressured investor sentiment and sent shares down about 13%.
- El Pollo Loco Holdings Inc. authorized a new $40 million share repurchase program, representing roughly 9% of the restaurant chain’s current market capitalization.
- SentinelOne Inc shares fell nearly 11% after the cybersecurity company issued weaker-than-expected second-quarter revenue guidance and announced plans to reduce its workforce by about 8%, despite topping earnings estimates.
- Gap Inc (NYSE:GPS) shares dropped more than 16% after the apparel retailer cut its full-year revenue forecast and issued disappointing second-quarter sales guidance, overshadowing an otherwise solid first quarter.
- Okta Inc surged 24% after the identity security company beat first-quarter expectations, raised its full-year outlook, and benefited from growing demand tied to artificial intelligence adoption.
- Dell Technologies Inc (NASDAQ:DELL) shares jumped 32% after the technology company delivered first-quarter revenue and earnings far above Wall Street expectations and raised guidance on booming AI-related demand.
- New Era Energy & Digital (NASDAQ:NUAI) said it reached a pending settlement with the State of New Mexico that would dismiss all claims against the company as part of a proposed $1 million bankruptcy-related agreement.
1:00pm: Equities extend gains
US equity indices extended gains to fresh records, led by an AI-driven rally and falling oil prices on hopes of the Strait of Hormuz reopening, IG's Axel Rudolph noted.
"Both Brent and WTI - trading in the $90 per barrel region - are set for a monthly drop amid hopes of the Strait of Hormuz re-opening in early June," the analyst said.
And next week's non-farm payrolls will be another indicator of the direction of travel for US stock markets.
"With markets expecting the situation in the Middle East to de-escalate and the Strait of Hormuz to re-open next month, investors will focus on the US labour market, factory orders, manufacturing and services data for further insight into the strength of the US economy, potentially shaping expectations around the future path of Federal Reserve policy," Rudolph added.
11:00am: Canada in technical recession
Canada has entered its first technical recession since the pandemic, after GDP contracted 0.1% in Q1 2026, following a 1% decline in Q4 2025, far below economist forecasts of 1.5% growth.
A surge in gold imports weighed on the headline figure, while exports slipped 0.1% due to US tariff pressure on auto shipments.
Business investment fell for a fifth straight quarter and residential investment declined 2%.
The household saving rate dropped to a two-year low of 3.5% as spending outpaced income growth.
With a weak job market and US tariffs still in place, the outlook remains uncertain.
9:55am: AI enthusiasm outweighs retail weakness
Wall Street opened higher on Friday, with the Nasdaq climbing to another record as investors continued to bet that easing tensions in the Middle East could help stabilize global markets and keep the rally alive.
The Nasdaq rose 163 points, or 0.6%, to 27,080 in early trading, while the Dow Jones Industrial Average gained 180 points and the S&P 500 added 31 points.
Investor sentiment has been buoyed by growing optimism surrounding US-Iran peace talks after reports suggested the two sides are nearing a tentative ceasefire agreement. Vice President JD Vance said the countries are “very close” to a deal, though negotiations have not yet crossed the finish line.
The prospect of calmer geopolitical conditions has also helped ease pressure on oil markets. According to Ipek Ozkardeskaya, senior analyst at Swissquote, traders are becoming less reactive to headline volatility and increasingly pricing in the possibility that a ceasefire and restored shipping traffic through the Strait of Hormuz could keep crude prices contained after a sharp drop earlier this week.
Technology shares were among the market’s biggest drivers. Shares of Dell Technologies surged after the company reported a 757% jump in first-quarter AI server revenue, adding fresh momentum to the artificial intelligence trade. Optimism around the sector also grew after AI startup Anthropic reportedly reached a $965 billion valuation in a new fundraising round, surpassing rival OpenAI.
Retail stocks, however, moved lower after weak apparel trends weighed on results from Gap and American Eagle Outfitters, both of which fell sharply in early trading.
Meanwhile, space-related stocks came under pressure after a rocket being tested by Jeff Bezos’ space company exploded Thursday night, sending a massive fireball into the sky. Shares of AST SpaceMobile were among the decliners.
Investors are also watching Friday’s economic calendar, with fresh US trade and inventory data due later in the morning alongside remarks from Federal Reserve officials Michelle Bowman and Anna Paulson.
7:30am: Stock futures nudge higher
US stock futures edged higher ahead of the bell as Wall Street digested a blowout earnings report from Dell and kept one eye on the latest twists in the US-Iran negotiations.
Dell was the star of the show after the close, with its shares rocketing nearly 40% after the technology giant beat expectations and issued an upbeat outlook, pointing to surging demand for its Nvidia-powered servers as the AI data centre buildout rolls on.
The S&P 500 and Nasdaq both hit record highs for the third consecutive session, with the AI trade and cautious optimism around a potential Iran deal keeping sentiment buoyant.
On that front, oil told an interesting story. Brent crude slipped below $93 a barrel, on track for its biggest monthly drop since 2020, after reports emerged that the US and Iran had tentatively agreed to extend their ceasefire by 60 days, with shipping through the Strait of Hormuz potentially set to resume unrestricted.
Markets have been watching the Strait closely, given that its effective closure has cut off millions of barrels of daily supply and stoked inflation fears that complicate the Federal Reserve's thinking on interest rates.
The catch is that nothing is signed yet. President Trump has not formally agreed to the terms, and Vice President JD Vance said it was too early to know "when or if" a deal would materialise.