Everything rallied on May 29. The S&P 500, Nasdaq, and Dow Jones Industrial Average all closed at record highs, powered by a cocktail of blockbuster tech earnings and the prospect of a diplomatic breakthrough in the Middle East. Bitcoin, never one to miss a party, crossed the $75,000 mark as the risk-on mood spilled into crypto.
The catalyst on the tech side was Dell, whose stock surged after reporting earnings that beat expectations, driven by surging demand for AI servers. On the geopolitical front, reports emerged of a potential US-Iran agreement that would extend a ceasefire for 60 days and ease shipping restrictions through the Strait of Hormuz, one of the most strategically important chokepoints for global oil transit.
Tech earnings and geopolitics align
The reported US-Iran deal would extend a ceasefire by 60 days and, critically, ease shipping restrictions through the Strait of Hormuz. Roughly 20% of the world’s oil supply passes through that narrow waterway. Any disruption there sends energy prices spiking and risk assets tumbling. Any easing does the opposite.
Oil prices fell on the news, which acted as a secondary tailwind for equities. President Donald Trump was expected to make a final decision on the diplomatic agreement, and the market clearly liked what it was hearing.
