Closing Bell: AI Rally Extends Beyond Megacaps, Lifting Cloud Stocks

AI optimism and a decline in oil prices helped U.S. stock indices edge higher to fresh records Wednesday.

The S&P 500 notched a gain of 0.1% to 7,523.2, the tech-heavy Nasdaq Composite rose fractionally to 26,670.1 and the Dow Jones Industrial Average was up 0.4% to 50,677.2. The benchmark price for U.S. crude fell more than 4% to roughly $89 per barrel on hopes that talks between the U.S. and Iran will result in resumed international oil flows. The day included earnings reports that show technology company growth ahead of analyst expectations. 

Snowflake Beats, Guides Higher as $6B AWS AI Deal Accelerates Growth Strategy

Snowflake (SNOW) delivered a strong Q1, topping expectations on both revenue and profitability, with sales of $1.39 billion and adjusted EPS of $0.39. The company also issued solid near-term and full-year guidance, forecasting Q2 product revenue of $1.415–$1.420 billion and FY2027 product revenue of $5.84 billion. Snowflake provided updates that highlight continued momentum in AI-driven growth and deepening cloud partnerships. It announced an expanded, multi-year collaboration with Amazon.com Inc (AMZN) Amazon Web Services, including a $6 billion commitment to Graviton compute and AI infrastructure to accelerate enterprise AI adoption, alongside a recent agreement to acquire Natoma.

Salesforce Beats on EPS, Raises FY Outlook as AI-Driven Growth

Salesforce (CRM) reported a solid Q1, with revenue of $11.13 billion slightly exceeding expectations, and adjusted EPS of $3.88 coming in well above estimates, marking 50% year-over-year growth. The company returned significant capital to shareholders, including a $25 billion accelerated share repurchase, and raised its FY27 revenue outlook to $45.9–$46.2 billion. Growth was driven by strong demand for AI-focused offerings such as Agentforce and Data 360. Salesforce also highlighted continued momentum into the second half of FY27, expecting organic revenue acceleration supported by its core platforms and recent contributions from Informatica.

Economic Events for Tomorrow (ET)

8:30am: PCE Price Index

8:30am: Prelim GDP

8:30am: Prelim GDP Price Index

8:30am: Unemployment Claims

8:30am: Durable Goods Orders

8:30am: Personal Income

8:30am: Personal Spending

8:55am: FOMC Member Williams Speaks

10:00am: New Home Sales

10:15am: FOMC Member Musalem Speaks

10:30am: Natural Gas Storage

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