Wall Street closed at record highs on May 29, with the S&P 500, Nasdaq, and Dow Jones all reaching new peaks. The rally was fueled by strong tech earnings and hopes for a diplomatic breakthrough in the Middle East.
Dell surged after reporting earnings that beat expectations, driven by soaring demand for AI servers. On the geopolitical front, reports of a potential US-Iran agreement to extend a ceasefire for 60 days and ease shipping restrictions through the Strait of Hormuz added to the risk-on sentiment.
Bitcoin broke the $75,000 mark, moving in tandem with equities on macro catalysts, suggesting it is behaving more like a risk-on macro instrument.
The deal is fragile: a 60-day extension is not a permanent peace deal. If negotiations fail, optimism could unwind quickly, impacting oil prices, equities, and Bitcoin's position above $75,000.