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Last updated: May 28, 2026, 5:32 PM ET

Retail Earnings Beat Inflation Headwinds

Best Buy reported higher first-quarter profits as gaming, computer and cellphone demand drove rising sales, while Costco posted increased third-quarter earnings on continued attraction of inflation-weary consumers seeking value offerings. American Eagle Outfitters logged a 10% revenue increase to $1.20 billion despite core brand declines, buoyed by strength at its Aerie lingerie line, and Kohl's narrowed its quarterly loss on better same-store sales performance. Dollar Tree delivered higher profit and revenue as its value proposition resonated amid uncertain macroeconomic conditions, demonstrating how discount retailers are maintaining momentum amid persistent inflation pressures.

Energy Markets React to Middle East Developments

Oil futures settled higher as traders cautiously weighed reports of a U.S.-Iran draft agreement to extend ceasefire negotiations, while Chevron's CEO warned of potential price jumps over summer as the Strait of Hormuz blockade removes up to 13 million barrels daily from global markets. U.S. crude stockpiles fell 3.3 million barrels for a fifth consecutive week, exceeding analyst expectations for a 4 million barrel draw, and Petrobras increased domestic gasoline prices after Brazil approved consumer subsidies to offset Iran war-driven crude costs. Gold rose on easing rate hike bets following reports of the tentative U.S.-Iran agreement, with Treasury yields trimming gains as oil price concerns moderated.

Technology Sector Shows AI-Fueled Momentum

Dell Technologies raised its fiscal year outlook to $165-169 billion after an 88% sales surge, while Anthropic topped OpenAI with a $900 billion valuation following $65 billion in new fundraising that eclipsed OpenAI's $730 billion mark. IREN Ltd. borrowed $3.6 billion for Nvidia chips to provide computing capacity to Microsoft, and Pimco urged caution on data center junk debt as the sector begins showing diverging performance between winners and losers. Elon Musk undermined SpaceX's Anthropic deal claims by stating the arrangement lasts only 180 days rather than the three years described in IPO filings.

Defense Spending Surges Amid Geopolitical Tensions

U.S. defense capital goods orders jumped to near-record levels in April, reaching the second-highest on record as the Iran conflict boosts military hardware demand. Dell secured a $9.7 billion defense contract that may benefit Trump's investment portfolio, though the president's family maintains automatic timing on stock purchases. The spending surge reflects growing government investment in defense infrastructure amid ongoing Middle East tensions and domestic security concerns.

Financial Services See Regulatory Scrutiny

The FTC launched an antitrust investigation into fertilizer industry costs, while Jefferies Financial Group faces an investor class action lawsuit over alleged "massive" water bond fraud involving its 352 Capital fund. CIBC agreed to sell its Caribbean arm for $1.6 billion to Bank of N.T. Butterfield & Son, receiving $1 billion cash plus 52.1 million shares valued at $645 million. Bridgepoint Group raised €5 billion for a European direct lending fund amid increasing demand for alternative financing vehicles.

IPO Pipeline Strengthens Across Sectors

Entrata filed for an initial public offering backed by Silver Lake, joining Apotex Health Corp. in Toronto IPO filings that showcase revenue growth at the Canadian generic drugmaker. Wealthsimple and Questrade Inc. will offer pre-IPO access to Canadian investors as startup funding rounds intensify, reflecting growing retail investor appetite for early-stage opportunities. The pipeline expansion suggests renewed confidence in public market debuts after extended private market dominance.

Currency Markets Reflect Deal Optimism

The dollar fell against all major peers after reports that the U.S. and Iran reached an agreement to extend ceasefire terms, pending Trump approval. Bitcoin dipped below $73,000 despite Trump's renewed push for the CLARITY Act, indicating that pro-crypto messaging from Washington may be losing effectiveness in driving digital asset gains. Natural gas futures added gains as the July contract moved to the front of the curve, with European buyers seeking alternatives amid Middle East supply disruption concerns.