Chapter 1: What market trends are influencing stock prices today?
Public.com presents The Rundown, your daily market update in 10 minutes. My name is Zaid Admani, and today is Friday, May 29th.
In today's episode, we'll break down Dell's monster earnings and why this old school computer company is suddenly one of the hottest names in AI. We'll also tell you about Anthropix fundraising round that made them the most valuable AI startup in the world.
Then stick around to the end of the show to find out why there might be a $250 bill soon with President Trump's face on it. We got a great show for you today.
Let's go. Stocks kept moving higher on Thursday, despite the hot inflation report. The S&P 500 jumped 0.6%, while the NASDAQ did even better, up nearly 1%. Now, we covered the PCE inflation report yesterday. It showed that inflation was running at 3.8% in April, but that wasn't enough to slow the market momentum, and I think there are a couple reasons why.
For one, the tech rally kept going yesterday.
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Chapter 2: How did Dell achieve a 757% increase in AI server sales?
I think it helped that the software company Snowflake dropped blowout earnings, pushing its stock up 36%, and that lit a fire under the whole sector. The other catalyst, though, and likely the main reason for the overall market surge, was the latest information regarding the Iran wars. The U.S.
and Iran have reportedly mostly agreed to a 60-day deal to pause fighting and reopen the Strait of Hormuz. And that sent oil prices lower to around $90 a barrel. So the optimism around a peace deal and the reopening of the Strait of Hormuz and, of course, all the hype around AI is pushing up the stock market. In fact, the S&P 500 is now on track for its ninth winning week in a row.
Now, I want to reiterate, we've been hearing about a peace deal for weeks now, and this war with Iran is still very much on. In fact, just this week, Iran fired a missile at Kuwait and sent attack drones in the Strait of Hormuz. But the market seems to be convinced that a peace deal is right around the corner. I mean, even the bond market seems to think so.
Bond yields are starting to push back after surging over the last couple weeks. The 10-year treasury yield is currently sitting at 4.44%, down from the 4.66% last week. And the 30-year Treasury yield is down under 5% again after jumping to nearly 5.2% last week, which was the highest since 2007.
So I got to say, the vibes are pretty good right now, maybe a little too good, but we're going to be staying on top of everything. So make sure you guys are subscribed to the podcast and tuning in every day to stay in the loop. Let's run through some headlines. Starting with Dell. Dell just reported an absolute monster earnings report and the stock jumped more than 30% as a result.
See, most people know Dell as the computer company that maybe your dad bought his first laptop from in like 2005. And while Dell still sells computers, they're now mostly an AI infrastructure company, specifically selling AI servers. Last quarter, Dell's revenues jumped 86% from a year ago to nearly $44 billion, blowing past the $32 billion estimate that Wall Street was expecting.
And here's the stat that made my jaw drop. Their AI server revenue grew 757% from a year ago to over $16 billion. So these AI servers that Dell makes are essentially machines packed with Nvidia chips and companies are buying them up to load them into data centers so they can have the computing power to run all their AI workloads. Dell is seeing a huge surge in demand for these servers.
In fact, they raised their full year AI revenue forecast to $60 billion up from the $50 billion just a few months ago. And beyond just the AI stuff, Dell also landed a $9.7 billion contract with the Pentagon this week to supply software across the US military.
Now, I do want to point out this is raising some red flags because President Trump recently bought Dell stock earlier this year, and he also shouted out Dell multiple times in the past. Once was at a rally in Georgia back in February where he told the crowd to go out and buy a Dell computer.
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