Finance

Hardware and infrastructure providers saw significant valuation gains as the generative AI build-out continues to dominate investor focus. Dell Technologies led the charge with a 33% single-day gain following a blowout earnings report that exceeded analyst expectations and raised full-year guidance. Other semi-conductor and server-related firms, such as Micron and Qualcomm, also posted substantial monthly gains, highlighting the broadening scope of the AI infrastructure trade.

Crude oil futures experienced their sharpest monthly decline since early 2020 as headlines suggested the U.S. and Iran may be nearing a ceasefire agreement. Brent crude slipped below $93 per barrel, while West Texas Intermediate shed nearly 17% over the course of May. Investors are closely monitoring White House communications for a final determination on the proposed deal, which would include the reopening of critical shipping lanes in the Strait of Hormuz.

Recent data indicating that annual inflation has reached a three-year high of 3.8% has prompted Federal Reserve officials to signal that interest rates will remain elevated for an extended period. Kansas City Fed President Jeff Schmid warned that the recent run-up in prices should not be viewed as transitory and suggested the central bank must remain vigilant to achieve its stability mandate. Market participants now largely expect rate cuts to be off the table until well into next year.