Nasdaq Composite Hits Record as Tech Rally Extends Into May 29

The Nasdaq Composite closed at a record 26,917.47 on May 27, gaining 0.91% as tech stocks led the market higher. Optimism over a potential 60-day US-Iran ceasefire extension and strong earnings from Snowflake drove the rally. Oil prices fell sharply on peace hopes, removing inflation pressure and boosting investor appetite for growth stocks.

Tech Stocks Drive the Rally

Snowflake soared 36.5% after beating earnings and issuing strong guidance for the next quarter. The cloud data platform also committed to spending $6 billion on Amazon Web Services over five years. Other enterprise software stocks followed, with the iShares Expanded Tech-Software Sector ETF (IGV) rising 2.8%. Memory and chip stocks also jumped, with Sandisk up 3.3%, Qualcomm up 4.2%, and Advanced Micro Devices up 4.6%.

Oil Prices Fall on Ceasefire Hopes

Brent crude fell 1.3% to $91.54 per barrel on May 29, down 17% since the start of May. West Texas Intermediate crude dropped 1.4% to $87.64 a barrel. The declines came after reports that US and Iranian negotiators agreed on a 60-day memorandum of understanding to extend their ceasefire. The Strait of Hormuz remained largely closed, but investors expect potential relief if the deal leads to a reopening.

Global Markets Benefit From Peace Optimism

European stock markets edged higher on Friday as investors welcomed the ceasefire news. Japan’s Nikkei 225 surged more than 1,700 points to the 66,400-yen range on May 29, with gains concentrated in AI and semiconductor stocks. The S&P 500 also closed at a record 7,563.63 on May 27, up 0.58%. Analysts warned that any ceasefire extension should be viewed with caution, as it will take time for oil supplies to recover.

What This Means for Investors

Lower oil prices reduce inflation concerns, which supports equity valuations and growth stocks like those in the tech sector. The Nasdaq’s strength reflects investor confidence that a stable geopolitical environment and lower energy costs will sustain corporate earnings. However, the tentative agreement still awaits final approval from US President Donald Trump, leaving room for volatility if negotiations stall.

Final Thoughts

The Nasdaq Composite’s record close reflects tech strength and falling oil prices on ceasefire optimism. Investors should monitor whether Trump approves the Iran deal, as rejection could reverse gains and reignite oil volatility.

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