U.S. stocks closed higher on Friday as strength in technology and health care names lifted the major indexes into the long Memorial Day weekend. The Dow Jones Industrial Average set a fresh all-time high, while the S&P 500 notched its eighth consecutive winning week — the longest such streak since late 2023. Investors weighed record-low consumer sentiment and elevated gas prices against easing Treasury yields and continued optimism around U.S.-Iran peace talks.
What Moved Markets
The Dow Jones Industrial Average climbed 294.04 points, or 0.58%, to close at a record 50,579.70. The S&P 500 rose 27.75 points, or 0.37%, to finish at 7,473.47. The Nasdaq Composite gained 0.19% to end at 26,343.97. The Russell 2000 was the day’s strongest performer, jumping 0.91% as small caps continued to benefit from broadening risk appetite.
The session got a lift from falling Treasury yields, with the 10-year declining 2.6 basis points to 4.558%, offering relief after a punishing stretch for bonds. Geopolitics remained a factor as both the U.S. and Iran signaled progress in talks to end the Middle East conflict, though sticking points around Iran’s uranium stockpile and Strait of Hormuz tolls kept a deal from being finalized. Oil prices climbed, with West Texas Intermediate rising 1.8% to $98.05 and Brent gaining 2.3% to $105, on persistent supply concerns. The average gasoline price stood at $4.55 per gallon heading into the holiday weekend — the highest Memorial Day reading since 2022.
Separately, Kevin Warsh was formally sworn in as Federal Reserve Chair in a White House ceremony, succeeding Jerome Powell. Fed Governor Christopher Waller warned that inflation is “not headed in the right direction,” citing elevated energy prices and rising long-term inflation expectations. The University of Michigan’s final May consumer sentiment reading fell to 44.8, a new record low, as consumers fretted over gasoline costs and their spread into broader prices.
Notable Movers
Dell Technologies (DELL) and HP Inc. (HPQ) each surged more than 15% after Lenovo posted record quarterly revenue powered by AI-related sales that nearly doubled. The blowout results from the Chinese PC giant lifted the entire personal computer and server hardware space.
Qualcomm (QCOM) extended its post-earnings rally with another 11% gain on Friday, pushing the chipmaker up 18% on the week and more than 50% since its fiscal second-quarter results on April 29. AMD (AMD) rose roughly 8% after Bank of America raised its server CPU market forecast to $125 billion by 2030, citing growing processor demand for AI workloads.
IMAX (IMAX) jumped 15% on reports the cinema technology company is exploring a potential sale. CEO Rich Gelfond previously told shareholders he was open to a deal. Estee Lauder (EL) rallied 10% after confirming it had ended merger discussions with Spanish beauty group Puig, removing an overhang that had weighed on the stock.
On the downside, Futu Holdings (FUTU) plunged 36% after China’s securities regulator launched a crackdown on illegal cross-border brokerage activity, ordering the firm and rivals to stop accepting new mainland clients and wind down domestic operations. Reddit (RDDT) fell 6% after Meta launched a standalone app called Forum that analysts at Truist flagged as a direct competitor to Reddit’s online discussion platform.
Looking Ahead
Markets are closed Monday for Memorial Day, with trading resuming Tuesday. Investors will return to a market pulled in competing directions. The S&P 500’s eight-week winning streak and the Dow’s record close suggest broad confidence, but record-low consumer sentiment, $4.55 gas, and a new Fed chair navigating inflation pressures present clear risks. The U.S.-Iran talks remain a wildcard for oil and risk assets alike. Meanwhile, the SpaceX IPO — targeting a $1.75 trillion valuation and a June 12 listing — continues to dominate investor attention, with retail traders already piling into space-related proxies. Some strategists have warned that a wave of mega-IPOs from SpaceX, OpenAI, and Anthropic could mark a market top, drawing parallels to the late 1990s.