# All Magnificent Seven stocks increased, led by Microsoft (MSFT) at 3.5%. *business · news · 2026-05-29 · The Financial Express* ## Key points - Snowflake surged 36% after announcing a $6 billion AI partnership deal with Amazon. - US and Iran reached a tentative peace agreement including a 60-day ceasefire extension and potential nuclear talks. - Q1 2026 US GDP was revised down to 1.6%, reflecting weaker investment and consumer spending. - The US core PCE price index rose 0.2% in April 2026, below expectations and calming inflation fears. - Persistent inflation and slower growth are raising concerns about a potential stagflation scenario in the US. Tech stocks lifted indexes, highlighted by Snowflake (SNOW)’s 36% gain following impressive earnings and a $6 billion AI deal with Amazon (AMZN). All Magnificent Seven stocks increased, led by Microsoft (MSFT) at 3.5%. ServiceNow rose 6.5%, Palantir over 8%, and Oracle over 6%, while Salesforce dipped 0.8% due to weak guidance. Financial stocks, however, struggled, with BlackRock and Visa falling 2.2% and 0.8%, respectively. Besides the tech-stocks rally, the market sentiments were boosted on reports that the US and Iran had reached a tentative peace agreement, easing concerns over inflation and future interest rate hikes. Washington and Tehran are reportedly set to extend their ceasefire by 60 days and begin negotiations on Iran’s nuclear program, while also considering unrestricted shipments through the Strait of Hormuz. However, the report noted that President Donald Trump has not yet approved the proposed terms. US-Iran Deal News The US-Iran deal had an immediate impact on other asset classes and financial markets. Bond yields eased as energy prices pared their rebound, despite data that favors a hawkish Federal Reserve. Brent crude futures declined to around $92 per barrel on Friday, reflecting a significant monthly loss of nearly 15% for the international oil benchmark this month. The yield on the 10-year US Treasury note fell to 4.46%, extending the drop from the 16-month high of 4.7% touched on May 20th. The dollar index hovered around 99 on Friday after weakening in the previous session. Also, gold steadied near $4,500 an ounce on Friday after recovering in the previous session, as reports of a preliminary agreement between the US and Iran eased concerns over inflation and interest rates. Fresh Set of Economic Data Global market investors now have a fresh set of economic data to base their investing decisions on. The Q2 GDP – Second Estimate, Initial Jobless Claims, PCE Index, Personal Income, and Personal Spending data were released on May 28. Most of this provides cues to investors as to how the Middle East conflict is affecting price pressures and impacting growth in the economy. The latest US PCE price index data showed softer-than-expected inflation readings, helping calm fears that the recent energy shock would significantly worsen the inflation outlook. Even so, markets continue to expect the Federal Reserve to keep interest rates unchanged well into next year, although policymakers continue to warn about persistent inflation risks. “Although inflation figures remain elevated, markets reacted relatively positively because the data came in line with analysts’ expectations. This eased fears of an even stronger inflation surprise and allowed investors to maintain their appetite for risk assets, particularly within the technology sector, which continues to lead the 2026 equity rally,” says Antonio Di Giacomo, Senior Market Analyst at XS.com. The US economy expanded an annualized 1.6% in Q1 2026, up from 0.5% in Q4 but below 2% in the advance estimate, primarily reflecting downward revisions to investment and consumer spending. The core PCE price index in the US, which is the Federal Reserve’s preferred gauge of underlying inflation in the US economy, rose by 0.2% from the previous month in April 2026, following a 0.3% increase in March, below market forecasts of 0.3%. From the previous year, the core PCE price index rose by an expected 3.3%, up from 3.2% in the prior month, remaining well above the Federal Reserve’s 2% target. PCE inflation rose as expected, and the first quarter GDP revision was revised downwards on softer investment growth. Still, consumer spending remained relatively robust, and jobless claims maintained their low level. Hawkish remarks by FOMC members also prevented a further drop in yields. Fed Vice Chair Jefferson warned that inflation risks remain tilted to the upside, while Minneapolis Fed President Kashkari said consumer prices are still “much too high”. “The macroeconomic outlook is beginning to signal more complexity for the U.S. economy. First-quarter 2026 GDP was revised lower to 1.6%, reflecting a more visible slowdown in economic growth. Softer consumer spending and moderating business investment are raising concerns about the economy’s ability to maintain its current pace of expansion. The combination of slower growth and persistently high inflation increases the risk of a moderate stagflation scenario, a development that concerns both the Federal Reserve and investors. Several analysts believe this environment significantly reduces the likelihood of interest rate cuts in 2026, especially if oil prices remain elevated due to ongoing geopolitical tensions,” adds Giacomo. **Companies:** Amazon, Microsoft, Snowflake, Oracle, Salesforce, Palantir, ServiceNow, BlackRock, Visa **Countries:** United States, Iran [Read the full story on The Financial Express](https://www.financialexpress.com/market/global-markets/sp-500-and-nasdaq-at-record-highs-tech-stocks-surge-and-us-iran-deal-reports-lift-market-sentiment/4254109/) --- Canonical: https://newsio.io/n/ecd27179-e926-4e16-89fd-40bc0b517812/all-magnificent-seven-stocks-increased-led-by-microsoft-msft-at-3-5-servicenow-r Summarized by Newsio from The Financial Express. https://newsio.io/how-it-works