Market Brief — May 29, 2026

US equities closed at record highs as the AI-led rally persisted, with the Dow (DJIA) up 0.7%, S&P 500 (SPX) +0.2% and Nasdaq (^IXIC) +0.2%, while the Nasdaq 100 was set for an ~8% gain in May. In Europe, the CAC 40 (FRA40) slipped 0.1%, FTSE 100 (UKX) fell 0.2% and DAX (DAX) inched up 0.1% as traders digested Q1 France GDP contraction, while China's Shanghai index (000001.SS) finished flat with the NBS manufacturing PMI forecast at 50.5 after a 50.3 prior reading.

Technology led sector performance with VGT up 1.8% and XLF up 0.6%, while defensives and cyclicals lagged with XLP down 1.8%, XLE -1.2%, XLY -1.0%, XLV -0.9% and VNQ -0.9%. Top gainers were DELL +32.76% after its AI-server results, OKTA +30.06%, NTAP +22.39%, TBBB +15.55% and TEAM +15.35%, all trading above 3-month average volumes. Largest decliners included AMBA -21.41%, GAP -15.40%, ASTS -14.79%, KRMN -12.69% and AEO -11.83%.

Global policy settings stayed on hold, with the Fed funds rate at 3.50%–3.75%, the ECB deposit rate 2.00% and the BoE Bank Rate 3.75%, while CME FedWatch put the probability of a hold near 99.9% as April US data showed nonfarm payrolls up 115,000, unemployment at 4.3%, CPI 3.8% YoY and 0.6% MoM and core PCE 3.3% YoY. Cleveland Fed nowcasts for May pointed to CPI MoM around 0.46% and core 0.23%. Statistics Canada said real GDP fell 0.1% annualized in Q1 2026 after a revised 1.0% decline in Q4 2025, leaving output flat QoQ and keeping focus on the Bank of Canada's June 10 meeting with the policy rate at 2.25%, while the US goods trade deficit narrowed to $82.4B in April as exports rose about 4% and crude exports topped 6.4M bpd; crude prices fell roughly 1.5%–2% and the US Dollar Index (DXY) slipped about 0.12% on tentative US–Iran ceasefire headlines to reopen the Strait of Hormuz and ease some oil sanctions.

Dell Technologies (DELL) jumped 32.76% after reporting $16.1B in quarterly AI-server revenue, a 757% YoY increase, raising its full-year revenue outlook to about $167B and delivering adjusted EPS of $4.86 versus $2.94 consensus. An AI-led rally broadened to autos, with Ford shares up more than 40% for May, their biggest monthly gain since 2009, while Bloomberg reported the Nasdaq 100 was set for an ~8% advance for the month as US stocks pushed to record highs. Portfolio rebalancing drove heavy ETF flows as BlackRock cut the equity overweight in its model portfolios from 3% to 1%, sending over $12B into IVV, triggering record outflows from TLH and around $10B of redemptions from factor and thematic ETFs including QUAL, IVE, THRO and MTUM toward IUSB and IALT, while US spot Bitcoin ETFs saw $228.88M of net outflows led by $177.94M from IBIT. AMTD completed its A$280 million acquisition of The Ritz-Carlton, Perth, and Future Fuels Inc. and ValOre Metals Corp. reported completion of Future Fuels' acquisition of Hatchet Uranium Corp. On the announced side, Scotiabank agreed to acquire MapleMark Bank, while Heritage Distribution moved to acquire AM Distributors and Pinnacle Mergers & Acquisitions facilitated the sale of Ferrari of Denver in Colorado.