Stocks Hold at Record Highs on US-Iran Deal Optimism | Bloomberg Brief 5/29/2026
Speakers
Cole Smead
— CEO & Portfolio Manager, Smead Capital
Matt Bloxham
— Head of Research, The Block
Summary
The video covers market reactions to a preliminary US-Iran ceasefire deal, record stock levels, and a tech rally. Cole Smead warns of a tech mania and expresses a bullish view on energy producers, particularly Canadian oil sands. Earnings movers include Dell surging and Gap and SentinelOne falling.
- US and Iran reach preliminary 60-day ceasefire extension pending Trump approval.
- Stocks hold at all-time highs; S&P 500 up 5% in May, Nasdaq 100 up 10%.
- Oil declines on deal optimism, but RBC warns supply losses remain severe.
- Dell shares soar 40% on strong AI server demand and raised guidance.
- Gap and SentinelOne fall sharply on disappointing earnings and guidance.
- SpaceX trims IPO valuation to $1.8 trillion; Anthropic valued at $965 billion.
- Cole Smead calls tech rally a mania and advises avoiding the sector.
- Smead is bullish on US and Canadian energy producers due to supply crisis.
Trade Ideas
Energy producers benefit from supply crisis.
The market is not pricing in the severity of the oil supply crisis; energy producers have strong operating leverage and will benefit from higher prices. Smead Capital holds about a quarter of its U.S. portfolio in energy producers and plans to be patient as the supply issue resolves.
Canadian energy producers are undervalued.
Canadian energy producers with long-life assets like tar sands are attractive based on enterprise value per flowing barrel. The downstream assets provide additional value that the market may not fully appreciate.
Tech sector is in a mania.
The tech sector is experiencing a mania similar to past bubbles. Hyperscaler off-balance-sheet commitments are enormous, while returns on capital are deteriorating. The market is ignoring fundamentals, and it is time to avoid or reduce exposure.
Up Next
This Bloomberg Markets video, published May 29, 2026, features Cole Smead discussing XLE, ECH, XLK. 3 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Cole Smead · Tickers: XLE, ECH, XLK