U.S. stocks hold near records as earnings and AI growth offset oil-price pressure

U.S. stock markets remained close to record highs on May 28, even as renewed geopolitical tensions and a fresh rise in oil prices weighed on sentiment.

The S&P 500 and Nasdaq Composite edged slightly lower after reaching all-time highs the previous day. The modest pullback came as investors assessed the impact of higher crude prices and renewed U.S.-Iran tensions, while still taking support from strong corporate earnings and enthusiasm around artificial intelligence.

Several company results helped sustain the market’s resilience. Dollar Tree and Kohl’s rose sharply after beating analyst estimates. Snowflake also jumped significantly, with the company attributing its business growth to artificial intelligence.

The rise in oil prices had a more negative effect on companies exposed to fuel costs. Norwegian Cruise Line Holdings and Delta Air Lines were among the businesses affected as investors considered the implications of more expensive energy.

The day’s trading underscored a divided market backdrop: corporate earnings and AI-linked growth continued to support valuations, while geopolitical risk and higher oil prices added pressure across sectors more exposed to energy costs.