US Pre-Market: Dell Surge Sparks AI Hardware Rally, US Stock Futures Rise, Oil Slides on US-Iran Ceasefire Hopes
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U.S. stock futures edged higher, driven by AI hardware rallies and digest of April PCE data. Dell's strong earnings, with significant AI revenue, spurred gains across the sector, including HPQ and SMCI. Preliminary U.S.-Iran ceasefire extension talks boosted risk appetite, though oil prices retreated. Despite sticky inflation (PCE at 3.8% YoY, core at 3.3%), tech stocks attracted capital. Consumer discretionary stocks like Gap and AEO declined on inflation concerns and weak apparel consumption. Upcoming U.S. economic data and Fed official speeches will provide further policy and market direction.
TradingKey - On Friday, May 29, pre-market trading saw the three major U.S. stock index futures edge higher as the market continued to digest April's PCE inflation data, progress in U.S.-Iran ceasefire negotiations, and the AI hardware rally sparked by Dell's earnings report. As of press time, Dow Jones futures were up 0.31%, S&P 500 futures rose 0.16%, and Nasdaq 100 futures gained 0.13%.
Performance of the three major U.S. index futures, Source: Investing
On the news front, the U.S. and Iran have reportedly reached a preliminary agreement to extend the ceasefire by 60 days, restart nuclear negotiations, and resume shipping in the Strait of Hormuz, though it still requires final approval from President Trump. Affected by this, crude oil prices continued to retreat, with WTI crude ( USOIL) falling to near $88, while Brent crude dropped toward the $93 mark. Spot gold ( XAUUSD) rebounded strongly to around $4,520, while Bitcoin ( BTCUSD) fluctuated near $73,500.
In the previous trading session, the three major U.S. indices hit new record highs again, driven primarily by the AI trade and easing geopolitical risks. Although the U.S. April PCE rose to 3.8% year-over-year and core PCE rose to 3.3%—with sticky inflation continuing to weigh on Fed rate cut expectations—tech stocks and the AI infrastructure chain continued to attract capital.
Market Volatility
Dell Technologies ( DELL) surged more than 33% in pre-market trading. The company reported first-quarter results for fiscal 2027, with revenue reaching $43.8 billion, up 88% year-over-year. AI orders for the quarter hit $24.4 billion, AI server revenue reached $16.1 billion, and the company raised its fiscal 2027 AI server revenue forecast to $60 billion while hiking its full-year revenue guidance midpoint to $167 billion.
U.S. AI hardware stocks rallied broadly in pre-market trading. HP Inc. ( HPQ) rose over 18%, Super Micro Computer ( SMCI) gained over 9%, and Qualcomm ( QCOM) climbed over 4%. The market believes Dell's latest earnings report further validates that AI server demand remains in a phase of rapid expansion.
NetApp ( NTAP) jumped over 17% in pre-market trading. The company's fourth-quarter revenue reached $1.95 billion, up approximately 12% year-over-year. It also provided strong revenue and earnings per share guidance for fiscal 2027, with the market viewing it as a beneficiary of rebounding AI data storage demand.
High inflation and low consumer confidence continue to weigh on the consumer discretionary sector. Gap ( GAP) fell more than 15% in pre-market trading, and American Eagle ( AEO) dropped about 11% pre-market. Gap lowered its full-year sales growth forecast, while American Eagle maintained its full-year comparable sales guidance but failed to alleviate market concerns regarding weak apparel consumption.
Market Headlines
US-Iran ceasefire negotiations have entered a critical stage. According to reports, negotiators have reached a preliminary framework to extend the ceasefire and restart nuclear talks, though the agreement has yet to receive final approval from Trump. If shipping restrictions in the Strait of Hormuz are lifted, energy supply shocks are expected to ease, and oil prices may pull back further.
The prospects for a US-Iran ceasefire boosted risk appetite, and US stock futures edged higher in Friday pre-market trading. This follows the S&P 500's 21st record closing high of the year on Thursday, as markets bet that cooling tensions with Iran, falling oil prices, and sustained AI demand will continue to support tech stocks and risk assets.
US PCE data for April showed that inflation remains sticky. Department of Commerce data indicated the PCE price index rose 3.8% year-over-year in April, while core PCE rose 3.3%; personal consumption expenditures grew 0.5% month-over-month, while real consumption increased by just 0.1%. This suggests that while nominal consumer spending remains resilient, improvements in real purchasing power are limited.
Key Data/Events Preview
At 8:30 AM ET on May 29, the U.S. will release April data for the goods trade balance, wholesale inventories, and retail inventories.
At 9:45 AM ET on May 29, the U.S. will release the May Chicago PMI, with the market monitoring whether manufacturing activity returns to expansionary territory.
On May 29 ET, several Federal Reserve officials, including Bowman and Daly, are scheduled to speak; the market will continue to look for clues regarding the Fed's policy path amid elevated inflation.
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
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