Stocks hit highs on reported U.S.-Iran deal, Dell surges on earnings

Wall Street treated the reported U.S.-Iran breakthrough less as a diplomatic headline than as an economic signal: if a 60-day ceasefire extension leads to more talks on Tehran’s nuclear program, traders are betting on less risk to oil flows through the Strait of Hormuz, softer inflation pressure and a friendlier backdrop for the Federal Reserve. That was enough to push stocks to fresh highs, with the S&P 500 rising for a sixth straight session, Brent crude settling below $94 a barrel and Treasury yields falling across the curve. The dollar also weakened against all developed-world currencies.

The move reflected how tightly markets have been wired to the three-month conflict. Lower crude prices matter because energy still shapes inflation expectations, and Thursday’s trading showed investors pricing in some de-escalation before the deal was even final. The tentative arrangement still needed President Donald Trump’s approval, and Iran’s leadership also had to sign off, but the prospect alone was enough to lift the MSCI All Country World Index to a record and send Asian stocks higher in anticipation of easier oil flows and a broader relief rally. Brent was headed for its biggest monthly drop since 2020, underscoring how much geopolitical risk had been embedded in prices.

Dell’s surge told a very different story. The company posted record fiscal first-quarter 2027 revenue of $43.8 billion, up 88% from a year earlier, with diluted earnings per share at a record $5.24, up 282%, and non-GAAP diluted EPS at a record $4.86, up 214%. Cash flow from operations reached a record $4.1 billion. Dell said AI server revenue jumped 757% to $16.1 billion, and the company said it had more than 5,000 AI server customers, including neoclouds, sovereign clients and enterprises.

Dell also raised its full-year revenue outlook to about $167 billion, including $60 billion from AI servers, well above its prior forecast of about $140 billion and above the Bloomberg-compiled consensus estimate of $142.1 billion. Shares rose almost 40% in extended trading after the update, and the stock had already climbed more than 150% for the year as of Thursday’s close, far ahead of the S&P 500’s roughly 10% gain. The split-screen market reaction made the day’s message clear: geopolitical easing helped the whole market, but Dell’s rally was driven by its own numbers, and by the scale of demand still flowing into AI infrastructure.