Tech Rally Powers S&P, Nasdaq to New Highs; MSFT Soars Despite PCE

Today's AI insights from 7horns.ai:Today's AI insights offer a key stock market analysis: US equities surged, with the S&P 500 advancing 0.57% to 7563 and the Nasdaq Composite rising 0.91% to 26917, both hitting new all-time highs. Microsoft soared 3.47% on strong AI revenue growth, while Snowflake skyrocketed 36.48% after reporting $1.33 billion in product revenue and securing a $6 billion deal with Amazon. This AI-powered analysis provides vital financial news and trading insights for your market outlook, highlighting robust earnings and the power of data-driven investing.AI insights powered by 7horns.ai. Visit 7horns.ai for your free daily AI market analysis.

You're listening to Seven Horns A.I. — your A.I.-powered market update. It's Thursday, May twenty-eighth, twenty twenty-six, and the closing bell has just rung on Wall Street, marking the end of today's trading session. US equities closed the day on a strong note, with the S&P five hundred advancing by zero point five seven percent to finish at seventy-five hundred sixty-three. The Nasdaq Composite advanced, adding zero point nine one percent to reach twenty-six thousand nine hundred seventeen. Both the S&P five hundred and the Nasdaq carved out fresh all-time highs today. The Dow Jones Industrial Average, however, remained largely subdued, ticking up just zero point zero five percent to close at fifty thousand six hundred sixty-eight. The market opened modestly lower this morning, initially weighed down by a hotter-than-expected inflation report – April's core P.C.E. reading came in at three point eight percent year-over-year, its highest in nearly three years – alongside renewed geopolitical tensions in the Middle East. The Dow was down about six-tenths of a percent at the open, while the S&P five hundred and Nasdaq also edged lower. But that dip was aggressively bought, especially in technology names. By midday, the Nasdaq had flipped to an eight-tenths of a percent gain, and the S&P five hundred was up by over half a percent. Both indices held those gains into the close, making it a classic "risk-on" rotation day, as investors leaned into the A.I. and cloud growth narrative, largely shrugging off macro concerns. Looking ahead after the close, S&P five hundred futures are essentially in line with the cash session, with no meaningful after-hours move yet. Dow futures are also flat, and Nasdaq one hundred futures are off just zero point one eight percent, suggesting nothing dramatic is being telegraphed for overnight trading. Shifting to individual movers, Microsoft was a standout, surging three point four seven percent. This impressive move was fueled by triple-digit A.I. revenue growth, better-than-expected adoption of Microsoft Three Sixty-Five Copilot, and bullish analyst commentary. Elsewhere, the rest of the megacap cohort saw more modest gains, all under one percent. The biggest story of the day belonged to Snowflake, which skyrocketed thirty-six point four eight percent. The data cloud company delivered a blockbuster first quarter twenty twenty-seven earnings report, with product revenue hitting one point three three billion dollars, a thirty-four percent year-over-year increase. Snowflake also announced a six billion dollar multi-year infrastructure deal with Amazon and raised its full-year guidance. Axon Enterprise also posted a strong double-digit gain, rising twelve point two seven percent. On the downside, Synopsys was the biggest large-cap loser, falling eight point six one percent following its earnings report. We saw a significant after-hours development with Autodesk, which gained one point six seven percent during regular trading, but then tumbled six point six two percent after hours. Despite an earnings beat, a three point six billion dollar all-cash acquisition of MaintainX is spooking investors, casting a shadow over what would have been a solid report. Conversely, Dell Technologies, which closed up four point one six percent today, is exploding in after-hours trading, up thirty-eight point six seven percent. This massive surge follows news of a nine point seven billion dollar Pentagon software deal and its fastest sales growth since twenty eighteen. This is the real after-hours story to watch. Asian markets had faced pressure earlier in their session, with the Nikkei two hundred twenty-five closing down modestly and the Hang Seng Index falling meaningfully by about one point three percent due to geopolitical concerns. However, with Wall Street's strong finish and record highs today, that positive momentum is now influencing live trading across Asia. Currently, the US-listed ETFs for Japan and China are ticking slightly higher in after-hours trading, suggesting a more constructive tone is taking hold as US sentiment filters through the live Asian session. Looking ahead, the market's ability to absorb hot inflation data – with P.C.E. at three point eight percent – and still rally to new highs is a notable shift. Today’s narrow but powerful tech rally, driven by A.I. and cloud earnings from Snowflake and Microsoft, pushed the S&P five hundred and Nasdaq to record closes. The near-flat Dow finish underscores that this was not a broad-based rally, but rather concentrated strength in specific growth sectors. Tonight's after-hours drama with Dell's surge and Autodesk's decline sets up a potentially volatile Friday open. That's your market wrap for today. This has been a Seven Horns A.I. production. For more insights, visit us at sevenhorns.ai. We'll be back tomorrow.