U.S. stocks rose on Friday, driven by a cooler-than-expected May producer price index. This positive movement occurred amidst geopolitical tensions and corporate news.
The S&P 500 rose by 0.38%, closing at 6,045.26, and is less than 2% away from its February record high. The Nasdaq Composite increased by 0.24% to 19,662.48, and the Dow Jones Industrial Average added 0.24%, settling at 42,967.62. European stock markets declined, with the Stoxx 600 index falling by 0.3%.
The May producer price index rose by 0.1% after decreasing 0.2% in April. Economists predicted a 0.2% increase. This softer reading boosted stock indexes and eased bond yields. Earlier, the U.S. May consumer inflation report also came in cooler than anticipated.
Oracle shares surged by 13% after exceeding expectations. CEO Safra Catz indicated cloud infrastructure revenue should increase by over 70% in fiscal year 2026 due to AI demand. This lifted the tech sector, contributing to the S&P 500's gains.
Geopolitical events impacted the market. Israel launched airstrikes in Iran, causing oil prices to jump and leading to a decline in U.S. stock futures. An Air India flight crash caused Boeing stocks to tumble. The crash also affected Boeing suppliers.
China is racing to build its AI chip ecosystem due to U.S. restrictions.