U.S. stock futures are showing positive movement before the opening bell, with all three major indices coming off a successful trading session and positioned for an overall positive week. In particular, shares of Dell Technologies are set to soar following an impressive earnings report fueled by increased demand for artificial intelligence products.
In notable geopolitical news, Iranian state media reported missile strikes targeting undisclosed locations, coinciding with the White House indicating a near completion of an agreement with Iran intended to resolve ongoing conflicts. However, President Donald Trump has not yet provided his final approval for the proposed deal.
Economic reports from the Commerce Department reveal continuing inflation pressures on consumers, with the personal consumption expenditures price index rising by 0.4% last month, leading to an annual rate of 3.8%—the highest since May 2023. Core inflation, minus food and energy costs, increased by 0.2% to a 12-month rate of 3.3%. While these figures align with expectations, they signal a potential easing in price increases. Nonetheless, the persisting inflation is impacting Americans’ savings, as evidenced by a drop in the personal savings rate to its lowest level since 2022.
In the world of corporate earnings, Dell Technologies reported its fastest revenue growth since going public in 2018, with a staggering 88% year-over-year revenue increase attributed to AI demand. The company revised its expectations for AI revenue this year to $60 billion, surpassing earlier projections of $50 billion and recently securing a $9.7 billion deal with the Pentagon.
Retail earnings released this week showcased a mixed bag of results. American Eagle Outfitters’ shares saw a roughly 10% decline following a report of dwindling revenue for its flagship brand, despite a heightened marketing campaign featuring actress Sydney Sweeney. In contrast, Gap’s core brand reported a 10% increase in comparable sales, outperforming analysts’ expectations; however, underwhelming performance at Old Navy led to a reduced full-year sales outlook, causing a 15% drop in shares for that retailer. Conversely, Best Buy experienced a 15% rise in shares after posting better-than-expected first-quarter results, buoyed by a modest increase in revenue.
On another front, families can now access the Trump Accounts app, marking significant progress toward the launch of a tax-deferred investment program set for July 4. This initiative allows parents to open accounts for their children, with an initial deposit of $1,000 available for newborns from 2025 to 2028, supported by contributions from various corporations and philanthropists.
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