CNBC — 2026-05-28#

Lead Story#

The AI trade roared back to life, overshadowing geopolitical anxiety and sticky inflation, as blowout earnings from Dell Technologies and Snowflake sent both stocks soaring 30% or more. Meanwhile, the private AI race escalated dramatically with Anthropic reaching a staggering $965 billion valuation to officially surpass OpenAI.

Markets & Economics#

The Federal Reserve’s preferred inflation gauge offered mixed signals; Core PCE rose 0.2% for April and 3.3% annually, matching expectations, but overall headline inflation stubbornly held at 3.8%. First-quarter GDP was revised down to a sluggish 1.6%, fanning stagflation fears among investors. Geopolitics dominated the energy tape, with crude oil plunging 5% on ceasefire hopes before violently reversing higher as the U.S. and Iran traded fresh military strikes. The volatility prompted Chicago Fed President Austan Goolsbee to warn of a persistent “stagflationary shock” in Asia, while Minneapolis Fed President Neel Kashkari stressed that the inflation fight takes priority over a decent labor market.

Business & Earnings#

Tech hardware and software stole the show today. Dell reported 88% revenue growth to $43.84 billion, fueled by a massive 757% spike in AI server sales. Snowflake surged 35% after crushing estimates and cementing a $6 billion cloud pact with Amazon. Retail was a tale of two tapes: Best Buy and Kohl’s rallied on earnings beats and improving sales trends, whereas Gap tumbled 13% after Old Navy dragged down guidance, and American Eagle shares fell double digits as its namesake brand lagged. In blockbuster M&A, Tilman Fertitta’s firm announced a $17.6 billion deal to take Caesars Entertainment private.

Investing & Commentary#

Jim Cramer told investors to use the Snowflake momentum as a reason to buy the dip in Amazon, arguing the $6 billion cloud commitment validates AWS’s custom chip strategy. Options expert Mike Khouw took a hard look at his failed bullish call on Zscaler, advising traders to cut their losses as institutional money violently rotates from software into semiconductors. In the commodities space, Exxon Mobil’s Neil Chapman warned that the ongoing Strait of Hormuz closure will push oil inventories to dangerously low levels, potentially sending prices to $150 a barrel in the coming weeks. Bank of America also outlined two oil price scenarios depending on whether the Strait sees a full or partial reopening following any peace deal.

Also Worth Watching#

• CVS Restores Zepbound Coverage: The pharmacy benefit manager is adding Eli Lilly’s blockbuster obesity injections and pills to its standard commercial formularies.
• Ferrari CEO Defends EV Pricing: Benedetto Vigna defended the $640,000 price tag of Ferrari’s first all-electric Luce amid fierce design and investor backlash.
• Drone Stocks Surge on Pentagon News: Unusual Machines rocketed 50% after reports that the Pentagon is considering taking equity stakes in domestic drone manufacturers.
• Wix Slashes 20% of Workforce: The web development firm is cutting staff, with its CEO citing the rapid evolution of AI capabilities.
• Oura Launches Smallest Ring Yet: The health tracking company revealed its Ring 5, which shrinks the wearable’s design by 40%.