📈 Closing Bell Recap: Software Strength Pushes Stocks To Fresh Records

Tech Leadership Returns As Oil Reverses Lower And Investors Digest A Heavy Round Of Economic Data

Thursday, May 28, 2026

Hello traders and investors,

The market had plenty to digest today, including earnings reports, inflation data, economic releases, and another round of developments surrounding the U.S. and Iran.

Despite opening under pressure, buyers stepped in as the day progressed, helping the major averages finish higher. The S&P 500 and Nasdaq Composite both closed at fresh record highs, while the Dow Jones Industrial Average also managed to secure another record closing high.

Market Summary

• S&P 500: +0.6%

• Nasdaq Composite: +0.9%

• DJIA: +0.1%

🛢️ Oil Reverses After Early Geopolitical Jitters

The day started with investors reacting to reports of military strikes between the U.S. and Iran, which initially pushed crude oil above $92 per barrel and pressured stocks at the open.

The tone changed quickly after Axios reported that U.S. and Iranian negotiators had agreed to a proposed 60-day memorandum of understanding designed to extend the current ceasefire and begin negotiations surrounding Iran's nuclear program. The proposal still requires approval from President Trump.

That headline sparked a sharp reversal in energy markets.

• WTI Crude Oil settled at $88.92 per barrel

• Up just $0.32 (+0.4%) on the day

The retreat from the morning highs helped improve sentiment across equities and allowed buyers to regain control.

💻 Software Names Lead The Technology Sector

Technology finished as one of the market's strongest areas, with the sector gaining 1.3%.

The biggest story came from software.

$SNOW Snowflake

Snowflake surged 36.44% after delivering what the market viewed as a blowout earnings report.

The company highlighted increasing success monetizing AI-related products, which fueled buying across the broader software group.

$ORCL Oracle

Oracle gained 6.66% as investors continued to favor companies benefiting from expanding enterprise AI spending.

$PLTR Palantir Technologies

Palantir climbed 8.17%, adding to the strength across software and data analytics companies.

$MSFT Microsoft

Microsoft rose 3.47% after reports from The Information indicated the company is preparing to unveil a new AI-powered coding framework.

The broader software space participated as well, with the iShares GS Software ETF (IGV) gaining 2.79%.

🔧 Semiconductor Stocks Recover During The Session

Chip stocks started the day lower but improved significantly as oil prices retreated.

The PHLX Semiconductor Index finished higher by 1.0% after reversing an early decline.

That recovery helped stabilize the broader technology sector after several sessions of mixed performance across semiconductor names.

🏥 Health Care Delivers The Strongest Sector Gain

Health care finished as the best-performing sector of the day, rising 1.4%.

$LLY Eli Lilly

Eli Lilly gained 4.11% and provided major support for the group.

$A Agilent Technologies

Agilent surged 16.90% after exceeding earnings expectations, making it one of the strongest individual performers of the session.

🛍️ Retail Earnings Produce Big Winners

Several retailers generated strong reactions following earnings releases.

$BBY Best Buy

Best Buy jumped 15.81% after earnings and helped support gains within the consumer discretionary sector.

$DLTR Dollar Tree

Dollar Tree climbed 17.87% after posting:

• An EPS beat

• Revenue in-line with expectations

• Strong guidance for Q2

• Raised FY27 EPS outlook

$HRL Hormel Foods

Hormel gained 12.55% following its earnings report.

$COST Costco

Costco slipped 0.85% ahead of its earnings release after the close.

📊 Economic Data Delivers A Mixed Picture

Investors also worked through one of the busiest economic calendars in recent weeks.

PCE Inflation Data

The Fed's preferred inflation gauge showed:

• Headline PCE: +0.4% month-over-month

• Core PCE: +0.2% month-over-month

Year-over-year readings moved higher:

• Headline PCE: 3.8%

• Core PCE: 3.3%

The report showed inflation remains elevated despite slower growth in some areas of the economy.

Personal Income & Spending

• Personal Income: 0.0%

• Personal Spending: +0.5%

The combination of flat income growth and rising prices raised concerns about potential pressure on consumers if the trend continues.

GDP Revision

The second estimate of first-quarter GDP was revised lower:

• Q1 GDP: 1.6%

• Previous estimate: 2.0%

The revision reflected weaker consumer spending and investment activity than initially reported.

Jobless Claims

• Initial Claims: 215,000

• Consensus: 214,000

While claims increased slightly, overall labor market conditions remain relatively stable.

Durable Goods Orders

Durable goods orders surged:

• +7.9% month-over-month

A large increase in Boeing aircraft orders drove much of the headline strength.

New Home Sales

New home sales declined:

• Down 6.2% month-over-month

• Down 11.3% year-over-year

Housing activity continues to face pressure despite elevated home prices.

📈 Treasury Market

Treasuries extended their recent rally.

• 2-Year Treasury Yield: 4.02% (-1 bp)

• 10-Year Treasury Yield: 4.46% (-3 bps)

Lower yields provided additional support for equities throughout the afternoon.

📅 Year-To-Date Performance

• Nasdaq Composite: +15.8%

• Russell 2000: +18.3%

• S&P MidCap 400: +12.5%

• S&P 500: +10.5%

• DJIA: +5.4%

💭 My Take

Today's session was a good example of how quickly market direction can change when a major macro concern begins to ease.

The market opened focused on military headlines and higher oil prices. By midday, attention had shifted toward a possible diplomatic path between the U.S. and Iran, and that change in tone helped support buying across several areas of the market.

What stood out most to me was where the leadership came from.

This wasn't a day driven solely by one or two semiconductor names. Software stocks, health care, select retailers, and several earnings-driven movers all contributed to the advance. Snowflake's earnings reaction grabbed much of the attention, but there were strong performances scattered throughout multiple sectors.

At the same time, the economic data painted a mixed picture. Inflation remains above where policymakers would like it to be, income growth was flat, GDP was revised lower, and housing activity weakened. None of those numbers were disastrous, but they also don't paint a picture of an economy firing on all cylinders.

For now, investors appear more focused on falling yields, stabilizing oil prices, and corporate earnings than on slowing growth concerns.

The result was another day of record closes and another reminder that buyers continue to show up whenever volatility creates an opportunity.

📲 Stay tuned for further updates on Substack Notes as I continue tracking inflation trends, Treasury yields, oil prices, earnings reactions, and developments surrounding U.S.-Iran negotiations heading into Friday's session.