May is coming to an end on markets, and it is time to take stock of what the month has delivered. Dell jumped 39% after hours after reporting results and raising its guidance. The company is worth about $206 billion, which means it could be closer to $280 billion when trading opens on Wall Street. Anthropic, the private AI group behind Claude, has raised funds at a valuation of $965 billion, just above OpenAI's latest valuation. SpaceX has reportedly trimmed its valuation target for next month's planned IPO: the new goal is said to be closer to $1.8 trillion than the hoped-for $2 trillion. Given that people were still talking about $1 trillion only a few months ago, this is the kind of downgrade most companies would frame and hang in reception.

The common thread linking Dell, Anthropic, and SpaceX is their close connection to AI. Yet exuberance is not limited to that part of the market. Yesterday, discount retailer Dollar Tree and electronics chain Best Buy each surged more than 15% after their results. In short, there is action almost everywhere.

The S&P 500 gained 4.9% in May and is up 10.5% in 2026. That still leaves it well behind Japan, which rose 9.4% in May and 28.4% this year. But both have been flattened by South Korea, up 24% in May and 94% in 2026. Oil is down 17% in May, helped by hopes of easing tensions in the Middle East. That is good news for the economy, although crude remains up 50% this year. Gold is down 2.5% for the month and is now up only 4.4% in 2026. Bitcoin fell 4% in May and is down 16% for the year.

Today, investors are buying the idea that the Middle East may be stepping back from the edge. The S&P 500, Nasdaq, and Dow all moved higher as reports of a tentative U.S.-Iran agreement gave markets something they badly wanted: a reason to worry a little less. The reported deal would extend the U.S.-Iran ceasefire by 60 days and ease restrictions on shipping through the Strait of Hormuz, one of the world's most important oil routes. Brent crude fell to about $91 a barrel, while West Texas Intermediate dropped to around $88.

Still, the ceasefire story comes with several asterisks. Donald Trump has not yet approved the memorandum. Iran has not formally responded to the latest version. Vice President JD Vance said talks are progressing but remain ongoing, while Treasury Secretary Scott Bessent described the negotiations as a continuing back-and-forth. There are also hard reminders that this is not a done deal. Iran reportedly fired missiles at unidentified targets on Thursday. The Pentagon said Iran launched a ballistic missile toward Kuwait and used attack drones in the Strait of Hormuz.

Today's company news shows the AI narrative is still strong. As I mentioned above, Dell surged after raising its full-year revenue and profit forecasts, a sign that the AI infrastructure boom still has plenty of market power behind it. Hewlett Packard Enterprise and Super Micro Computer rallied too.

But not every corner of the economy looks so confident. The Gap shares fell sharply after the retailer cut its annual sales forecast, pointing to pressure on budget-conscious consumers. Costco, meanwhile, reported higher fiscal third-quarter earnings and revenue, offering a more stable read on consumer spending. The company is often treated as a rough thermometer for the American household. Its results suggest consumers are still spending, especially where they see value.

Today's economic calendar gives investors more to chew on. The April trade-in-goods report is expected to show the deficit narrowing slightly to about $87 billion from $87.4 billion. The Chicago purchasing managers index is expected to rise to 50.3 from 49.2, which would put it just above the line separating contraction from expansion. Several Fed officials are also speaking today, including Michelle Bowman, Anna Paulson, Neel Kashkari, and Mary Daly.

Today's economic highlights:

Today's agenda includes: consumer confidence and housing starts in Japan; housing prices in the United Kingdom; inflation in France, Spain, Italy, and Germany; KOF leading indicators in Switzerland; unemployment in Germany and Italy; unemployment benefit claims in France; in the United States, wholesale inventories, retail inventories excluding autos, goods trade balance, Fed Bowman's speech, and Chicago PMI; in Canada, GDP growth rate and monthly GDP. See the full calendar here.

  • Dollar index: 99.115
  • Gold: $4,525
  • Crude Oil (BRENT): $92.60 (WTI) $88.67
  • United States 10 years: 4.44%
  • BITCOIN: $73,620

In corporate news:

  • Dell raises its forecasts and targets $60 billion in AI server sales. The share price soars 39% in after-hours trading.
  • The Gap plummets 14.5% in after-hours trading following its quarterly results.
  • Okta gains 8% in after-hours trading following its quarterly results.
  • Microsoft is set to launch a new coding model next week.
  • Pfizer and the Chinese company Innovent Biologics have signed a global agreement worth up to $10.5 billion to develop cancer drugs.
  • Amazon is scrapping its internal AI ranking to prevent employees from focusing on usage scores, according to the FT.
  • Tesla remains well behind Waymo in the roll-out of robotaxis in Texas.
  • Autodesk is acquiring Maintainx for $3.6 billion.
  • Intelligent Monitoring Group is finalising the acquisition of a New Zealand company.
  • Howmet Aerospace files for registration of debt securities.
  • Pateo Connect Technology is considering a collaboration with Nvidia in AI and autonomous driving.
  • Kinder Morgan enters into an amended and restated revolving credit facility agreement dated 21 May 2026.
  • Anthropic raises $65 billion in Series H funding, bringing its post-money valuation to $965 billion.
  • Toyota is suspending development of the next electric Lexus and refocusing on SUVs in the face of slowing global demand.
  • Hitachi is deploying AI capable of automatically repairing malfunctions in factories.

Analyst Recommendations:

  • Best Buy Co., Inc.: UBS downgrades to neutral from buy and raises the target price from USD 85 to USD 86.
  • Caesars Entertainment, Inc.: JP Morgan downgrades to neutral from overweight and reduces the target price from USD 35 to USD 31.
  • Epam Systems, Inc.: Jefferies downgrades to hold from buy and reduces the target price from USD 130 to USD 110.
  • Equity Residential: Piper Sandler & Co downgrades to neutral from overweight and reduces the target price from USD 78 to USD 72.
  • Federal Realty Investment Trust: Deutsche Bank upgrades to buy from hold and raises the target price from USD 110 to USD 135.
  • Regency Centers Corporation: Deutsche Bank downgrades to hold from buy and raises the target price from USD 83 to USD 85.
  • Rollins, Inc.: Bernstein downgrades to market perform from outperform and reduces the target price from USD 70 to USD 52.
  • Sentinelone, Inc.: Raymond James downgrades to market perform from strong buy.
  • The Gap, Inc.: JP Morgan downgrades to neutral from overweight and reduces the target price from USD 35 to USD 27.
  • Viper Energy, Inc.: RBC Capital initiates coverage with an outperform rating and a target price of USD 58.
  • Boston Scientific Corporation: TD Cowen maintains its buy recommendation and reduces the target price from USD 80 to USD 61.
  • Crowdstrike Holdings, Inc.: Jefferies maintains its buy recommendation and raises the target price from USD 500 to USD 775.
  • Dell Technologies Inc.: Evercore ISI maintains its outperform rating and raises the target price from USD 270 to USD 450.
  • Dollar Tree, Inc.: Truist Securities maintains its buy recommendation and raises the target price from USD 107 to USD 136.
  • Dycom Industries, Inc.: Cantor Fitzgerald maintains its overweight recommendation and raises the target price from USD 436 to USD 654.
  • Elastic N.v.: Baird maintains its outperform rating and reduces the target price from USD 92 to USD 72.
  • Enphase Energy, Inc.: TD Cowen maintains its hold recommendation and raises the target price from USD 35 to USD 70.
  • Icon Public Limited Company: BMO Capital Markets maintains its outperform rating and raises the target price from USD 130 to USD 160.
  • Marvell Technology Group Ltd: GF Securities Co. Ltd. maintains its buy recommendation and raises the target price from USD 165 to USD 230.
  • Mongodb, Inc.: Mizuho Securities maintains its outperform rating and raises the target price from USD 325 to USD 400.
  • Netapp, Inc.: Evercore ISI maintains its in-line recommendation and raises the target price from USD 115 to USD 170.
  • Okta, Inc.: BMO Capital Markets maintains its outperform recommendation and raises the target price from USD 95 to USD 120.
  • The Gap, Inc.: Barclays maintains its overweight recommendation and reduces the target price from USD 33 to USD 26.