Story perspectives

AI Earnings Surge Drives S&P 500 Record, Goldman Targets 8,000

5/28/2026

Summary

Story summary

AI-driven earnings growth lifted the S&P 500 to a record despite higher oil prices and inflation.
The index closed at 7,520.36 on May 28, its highest level.
Technology firms posted average first-quarter earnings growth of 50%, far above typical rates.
Goldman Sachs raised its S&P 500 target to 8,000 points, citing strong profits and AI optimism.
Investors awaited the April personal consumption expenditures (PCE) index, projected to rise 0.5% monthly and 3.8% annually.

History

Historical Context

The Nasdaq Composite, launched in 1971, surged 400% between 1995 and its March 10 2000 peak of 5,048.62, driven by dot-com valuations. After the bubble burst, the index fell about 78% by October 2002, prompting tighter market regulation. Today’s AI-fuelled earnings surge echoes that earlier cycle, but with far higher baseline levels overall market.

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Story summary

AI-driven earnings growth lifted the S&P 500 to a record despite higher oil prices and inflation.
The index closed at 7,520.36 on May 28, its highest level.
Technology firms posted average first-quarter earnings growth of 50%, far above typical rates.
Goldman Sachs raised its S&P 500 target to 8,000 points, citing strong profits and AI optimism.
Investors awaited the April personal consumption expenditures (PCE) index, projected to rise 0.5% monthly and 3.8% annually.

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