US Stocks Close at Record Highs Again on AI Rally, Hopes for US-Iran Peace MOU

All three major US stock indexes closed at record highs as optimism over artificial intelligence investment combined with hopes for a peace memorandum of understanding between the US and Iran.

On May 29, the Dow Jones Industrial Average rose 0.72% to 51,032.46. The S&P 500 gained 0.22% to 7,580.06, while the Nasdaq Composite added 0.21% to 26,972.62.

All three indexes set fresh intraday and closing records. For the week, the S&P 500 advanced 1.43%, the Nasdaq climbed 2.39%, and the Dow rose 0.9%.

Investor sentiment was also supported by prospects for a final decision on a memorandum of understanding between Washington and Tehran aimed at ending the war. President Donald Trump wrote on Truth Social that officials would meet in the White House Situation Room to make a final decision on the MOU with Iran.

Oil prices fell as tensions in the Middle East eased. Brent crude settled down 1.77% at $92.05 a barrel, while West Texas Intermediate fell 1.73% to $87.36.

Optimism over expanding AI investment also lifted equities. Dell Technologies reported stronger-than-expected earnings the previous day, helped by a surge in demand for servers used in AI data centers. Its shares jumped 32.76% on May 29, leading gains among technology stocks.

Other AI-linked shares also advanced after Dell raised its outlook. Hewlett Packard Enterprise rose 12.6%, Super Micro Computer gained 11.6%, Oracle added 10.84%, and Microsoft climbed 5.4%.

The S&P 500 has now risen for nine straight weeks. Reuters said that marks its longest weekly winning streak since December 2023.

Lee Seul-gi, Hankyung.com reporter, seulkee@hankyung.com