US-Iran Rumors Ignite Nasdaq All-Time Highs & Microsoft Surge

Today's AI insights from 7horns.ai: Despite initial concerns over US-Iran tensions and sticky PCE inflation, the Nasdaq Composite surged 0.84% to a new all-time high of approximately 26900, driven by trade deal rumors. Microsoft led gains among megacaps, climbing 3.3% on strong AI interest, while Snowflake captivated investors, soaring 38.5% after reporting impressive first-quarter earnings with $1.39 billion in revenue. This AI-powered market intelligence offers critical stock market analysis and market outlook for data-driven investing, highlighting how geopolitical shifts and earnings reports impact performance. AI insights powered by 7horns.ai. Visit 7horns.ai for your free daily AI market analysis.

You're listening to 7 Horns AI — your AI-powered market update. Good afternoon, and welcome to your midday market check on this Thursday, May twenty-eighth, twenty twenty-six. As we approach the closing hour, with roughly forty minutes left in the regular session, the major U.S. indices are trading mixed to slightly higher, showing notable resilience after a challenging start to the day. The S&P five hundred is up about one-half of one percent, or thirty-nine point eight zero points, currently at seventy-five sixty point one six. The Nasdaq Composite is posting a solid gain, up zero point eight four percent, adding over two hundred twenty-four points to trade around twenty-six thousand nine hundred. The Dow Jones Industrial Average, however, is essentially flat, up just two-hundredths of one percent. Markets opened under pressure this morning. Futures had pointed to a lower open, with S&P five hundred futures down about three-tenths of a percent pre-market. This downbeat tone was driven by escalating US-Iran tensions and a slightly hotter-than-expected P C E inflation report for April. The core P C E came in at zero point four percent month-over-month and three point eight percent year-over-year, reinforcing sticky inflation concerns. Overnight, Asian markets had a rough session, with Japan's Nikkei two hundred twenty-five closing down roughly one point two six percent due to the US-Iran escalation. Hong Kong's Hang Seng Index also closed down between one point three and one point four percent, and European markets absorbed the Iran headlines with modest declines. This set a cautious tone for the U.S. open, which was indeed lower. However, a sharp reversal took hold by midday. Rumors of a potential US-Iran trade deal surfaced, which took the edge off oil prices and sparked a wave of buying. The Nasdaq climbed to a fresh all-time high, and the S&P five hundred pushed into positive territory. Among the megacaps, Microsoft is a clear standout, surging three point three percent today on strong investor interest in artificial intelligence and its ongoing investment themes. Amazon and Nvidia are also showing modest gains, up zero point seven two percent and zero point six eight percent respectively. Google, Tesla, and Apple are relatively quiet, with Apple flat on the day. Meta Platforms is showing a slight dip, down zero point three seven percent. The big story for individual stocks is Snowflake, which has soared thirty-eight point five percent following a blowout first quarter earnings report for fiscal year twenty twenty-seven. The company reported total revenue of one point three nine billion dollars, beating estimates. Product revenue grew thirty-four percent year-over-year, while total revenue was up thirty-three percent year-over-year. Management also raised their full-year product revenue guidance to five point eight four billion dollars. Red Cat is also seeing significant gains, up thirty-four point five percent, potentially on momentum and defense themes. Arm Holdings is up eleven point four percent, riding the artificial intelligence semiconductor demand wave. On the downside, Synopsys has dropped nearly ten percent post-earnings, making it one of the session's worst performers. In commodities, gold has rallied one point one five percent, reflecting a safe-haven bid amid geopolitical uncertainties. Oil, after an initial surge on Middle East tensions, is now modestly lower, with the U S O E T F down zero point two seven percent as rumors of a U S-Iran deal surfaced. Oil prices had fallen back below ninety dollars a barrel, providing some relief. As we head into the final hour of trading, the market is demonstrating resilience, with buyers stepping in after an initially challenging open. Investors will be closely watching for several key earnings reports after the bell today, including Dell, Costco, Workday, and Autodesk. The market's sentiment remains constructive but cautious, with optimism in artificial intelligence offset by ongoing concerns about inflation and lingering Middle East risks. The direction of today's U.S. session, particularly the tech-heavy Nasdaq's new all-time high, could provide a more constructive tone for Asian markets when they open later tonight, potentially reversing some of their earlier declines. That's your midday market check from 7 Horns AI. Stay sharp, and we'll catch you at the close.