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S&P 500 and Nasdaq hit record closing highs as US and Iran agree to extend ceasefire | Reuters

SUMMARY
Indexes up; Dow 0.05%, S&P 0.58%, Nasdaq 0.91%
Eli Lilly advances after CVS brings back Zepbound coverage
Microsoft up on report company will release new coding model next week
U.S. inflation rises at its fastest pace in three years

NEW YORK, May 28 (Reuters) - The S&P 500 ​and the Nasdaq posted record closing highs on Thursday after news reports said the U.S. and Iran had reached a draft agreement to ‌extend their ceasefire for 60 days, while investors also digested key inflation data.
The Dow Jones Industrial Average, which was subdued during the session, eked out small gains in afternoon trade to finish at another closing high.

The agreement still needs U.S. President Donald Trump's approval, sources told Reuters. Iran's Tasnim news agency, meanwhile, said the text of a potential memorandum of understanding with the U.S. has not yet been finalized or confirmed.

Economic data showed U.S. inflation increased at its fastest pace in three years in April, ​driven by higher energy prices amid the Iran war....

Meanwhile, U.S. GDP for the first quarter was revised lower to a 1.6% annualized increase, with momentum expected to slow this quarter...

The S&P 500 healthcare index (.SPXHC), opens new tab posted strong gains. Eli Lilly (LLY.N), opens new tab advanced 4% after CVS Health (CVS.N), opens new tab said it would restore the drugmaker's weight-loss injection, Zepbound, to its coverage and add its newly approved ​obesity pill Foundayo.

Tech shares (.SPLRCT), opens new tab also moved higher. Microsoft (MSFT.O), opens new tab gained 3.5% after news website the Information reported that the company would release a new coding model next ​week.

Marvell Technology (MRVL.O), opens new tab rose 3% after UBS raised its target price to $230 from $195.

The company's shares have more than doubled so far this year.

Snowflake SNOW.N shares soared 36% after the data analytics ‌firm lifted ⁠its annual product revenue forecast and announced a five-year AI infrastructure deal worth $6 billion with Amazon Web Services (AMZN.O), opens new tab.

Peers Datadog (DDOG.O), opens new tab and MongoDB (MDB.O), opens new tab also climbed.

Renewed confidence in AI and earnings growth momentum have underscored the recent rally despite the Middle East tensions, which have increased inflationary expectations.

"Markets continue to look through these risks because the global economy and corporate earnings remain relatively resilient," said Jitania Kandhari, deputy CIO, solutions and multi-assets, at Morgan Stanley Investment Management.

"Geopolitical instability could ultimately accelerate spending in areas tied to ​AI, including cybersecurity, defense technology, energy ​infrastructure and supply-chain resiliency, reinforcing the ⁠long-term investment case."

While the S&P 500 is trading at roughly 21 to 22 times forward earnings versus a trailing 10-year average of 19.7 times, investors are less concerned because earnings expectations are rising faster than stock prices, Kandhari said.

Among other movers, Dollar ​Tree (DLTR.O), opens new tab climbed almost 18% after the discount retailer lifted its full-year profit forecast, while Best Buy (BBY.N), opens new tab also rose 15.8% ​after the electronics vendor ⁠forecast second-quarter sales above estimates.

Drone companies rose after the Wall Street Journal reported that the Trump administration was in talks to fund drone firms. Shares of Unusual Machines (UMAC.A), opens new tab surged almost 11%.


https://www.reuters.com/business/wall-st-futures-dip-escalating-mideast-tensions-2026-05-28/

S&P 500 and Nasdaq hit record closing highs as US and Iran agree to extend ceasefire
https://www.straitstimes.com/business/companies-markets/sp-500-and-nasdaq-hit-record-closing-highs-as-us-and-iran-agree-to-extend-ceasefire
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