[New York Stock Exchange] Snowflake's Strong Earnings Drive Broad Rally as Markets Close Higher

End-of-War Hopes Grow Despite Turbulence in Iran War Negotiations

On May 28 (local time), the three major U.S. stock indexes all closed higher, buoyed by hopes that the Iran war is finally heading toward an end and a rally in technology stocks. Both the S&P 500 and the Nasdaq Composite reached record highs.

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average finished at 50,668.97, up 24.69 points (0.05%) from the previous trading day. The large-cap S&P 500 rose by 43.27 points (0.58%) to 7,563.63, while the tech-heavy Nasdaq Composite jumped 242.736 points (0.91%) to close at 26,917.471.

New York Stock Exchange scene. New York (USA) – Photo by Yoonju Hwang

On this day, the New York stock market was lifted as technology stocks regained leadership. In addition, U.S. and Iranian negotiators closely monitored news reports regarding a possible extension of the ceasefire, which fueled optimism for an end to the war.

In particular, investor enthusiasm for artificial intelligence (AI) surged once again following Snowflake's strong earnings outlook. The cloud-based data platform provider issued a positive second-quarter forecast, and both its recent quarterly revenue and net income exceeded expectations. As a result, its share price soared by 36.5% to a record high. News that the company signed a contract to invest $6 billion in Amazon Web Services (AWS) over the next five years further boosted buying momentum. Thanks to this, memory-related stocks surged, and the share prices of SanDisk, Qualcomm, and AME also rose by about 3–4%.

Regarding the war in Iran, expectations for a resolution grew following reports that the U.S. and Iran had reached a tentative agreement to extend the ceasefire by 60 days and to begin additional negotiations related to Iran's nuclear program. However, Treasury Secretary Scott Bessent drew a line, saying, "The negotiation teams are exchanging opinions," but stopped short of confirming any agreement.

On this matter, Axios reported that U.S. President Donald Trump requested "about two days" regarding the conditions of the negotiations. Iran, for its part, countered that it had not agreed to the terms.

Veteran strategist Louis Navellier predicted, "Even if it is only a 60-day agreement to reopen the strait, a relief rally is likely to occur because serious supply disruptions are approaching rapidly."

International oil prices were mixed. On the New York Mercantile Exchange, July West Texas Intermediate (WTI) crude for delivery rose 0.3% from the previous session to $88.90 per barrel. On the ICE Futures Exchange, July Brent crude for delivery fell 0.6% from the previous session to $93.71 per barrel.

Bloomberg reported that although recent clashes in the Persian Gulf have highlighted the difficulties of reaching a peace agreement to restore energy supplies, expectations for a renewed ceasefire have outweighed these concerns.

Elias Haddad of Brown Brothers Harriman said, "The market continues to fluctuate due to changing public opinion on the Iran war," but added, "Nevertheless, risk appetite is likely to be maintained as both sides continue negotiations to reach an agreement that could reopen the Strait of Hormuz."

As rising energy costs add to inflationary pressures, concerns about a possible Federal Reserve interest rate hike are growing. The U.S. Personal Consumption Expenditures (PCE) price index for April recorded its fastest annual increase in nearly three years, while first-quarter U.S. economic growth slowed to an annualized rate of 1.6%, lower than earlier estimates.

Gina Bolvin of Bolvin Wealth Management Group commented, "The economy is still growing, but high inflation is limiting the Fed’s policy flexibility and delaying the timing of rate cuts." She added, "As growth slows and inflation rises again at the same time, the environment is becoming even more challenging for investors."

This content was produced with the assistance of AI translation services.