Markets Brace for GDP and PCE Reports 28/05/2026

 HOT stories for today

Market wrap:

• The Dow pushed to fresh intraday and closing records on Wednesday as easing oil prices helped support sentiment across blue-chip stocks. The 30-stock index rose 182.60 points, or 0.4%. The S&P 500 edged up 0.02% to also close at a record, while the Nasdaq Composite gained 0.1%. Crude fell during the regular session after Secretary of State Marco Rubio said talks with Iran had made progress and that the administration still preferred a negotiated diplomatic path. President Donald Trump, however, said he would not allow Iran to control the Strait of Hormuz as part of any deal. Iranian state television had earlier reported that Tehran would restore commercial traffic through the Strait of Hormuz to prewar levels within one month of an agreement, according to Reuters. The White House dismissed reports of a memorandum of understanding as “a complete fabrication.”
• That optimism faded overnight. West Texas Intermediate crude futures rose 2%, topping $90 a barrel, after Reuters reported that the U.S. military carried out fresh strikes in Iran targeting a military site. Markets also remain focused on inflation and Fed policy. Officials, including Austan Goolsbee and Neel Kashkari, warned that inflation pressures remain central to the outlook, with Kashkari saying the inflation fight takes priority while the labor market remains “in decent shape.” Investors now turn to Thursday’s April PCE price index, the Fed’s preferred inflation gauge, due at 8:30 a.m. ET. The release carries added weight as Kevin Warsh begins his tenure as Federal Reserve chair.

Record Trifecta Hides a Fragile Rally

• The S&P 500, Nasdaq and Dow all closed at record highs together Wednesday for the first time in 2026, as investors leaned into hopes that the Iran war may be moving toward a resolution. The move was not dramatic, but it marked the first three-index record close since October 2025. Strategists said the session looked more like consolidation near highs than a broad breakout. Markets have repeatedly rallied on positive headlines around U.S.-Iran talks, even when optimism later faded. That pattern suggests investors remain eager to price in a diplomatic outcome, while showing limited willingness to sell when progress stalls. 
• Travel stocks and consumer names caught a bid on Wednesday, while the AI and semiconductor leaders that powered much of this year’s rally took a pause. The setup carries some historical caution. The last time all three major indexes closed at records together, optimism around U.S.-China trade helped push stocks higher, but the rally soon lost momentum. For now, AI spending remains the market’s dominant long-term support, with Micron, Western Digital and other semiconductor names still riding powerful demand. But after such a strong run, investors may need more than diplomatic headlines to keep the rally moving higher.

Stocks on the move:

• Salesforce (CRM): Shares were slightly lower after current-quarter revenue guidance came in just below expectations, despite a first-quarter earnings and revenue beat and higher full-year earnings guidance.
• Nutanix (NTNX): Shares rose 3% after fiscal third-quarter earnings, revenue and operating margin topped analyst expectations.
• Agilent Technologies (A): Shares jumped 11% after the healthcare equipment company raised its full-year adjusted earnings outlook and beat second-quarter estimates.
• Marvell Technology (MRVL): Shares slipped more than 1% despite stronger-than-expected first-quarter results and upbeat current-quarter guidance.
• Everpure (EVPR): Shares fell more than 6% even after beating first-quarter earnings and revenue estimates, as gross margin came in only in line with expectations.
• Snowflake (SNOW): Shares surged 33% after beating first-quarter estimates and announcing a five-year, $6 billion spending plan with Amazon Web Services.

Watchlist: MRVL, CRM, SNOW, MU, NVDA, XOM, DLTR, TD, DELL

Key Economic Events Today:

EST time

08:30 am: USD Core PCE Price Index
08:30 am: USD Unemployment Claims
08:30 am: USD Prelim GDP
08:30 am: USD Core Durable Goods Orders
08:55 am: USD FOMC Member Williams Speaks
10:00 am: USD New Home Sales
10:15 am: USD FOMC Member Musalem Speaks
10:30 am: USD Crude Oil Inventories
03:00 pm: USD FOMC Member Barkin Speaks


Earnings

BMC (Before Market Open): Royal Bank of Canada (RY), Toronto Dominion Bank (TD), Burlington Stores (BURL), Dollar Tree (DLTR)

AMC (After Market Close): Dell Technologies (DELL), Costco (COST), Autodesk (ADSK), NetApp (NTAP), MongoDB (MDB)


The TEFS Analyst team wishes you a successful day!