Iran peace deal, Dell shares surge, Trump Accounts and more in Morning Squawk

In a significant market update, shares of Dell Technologies experienced a remarkable surge of up to 39% during extended trading following the company’s impressive earnings report, which highlighted its fastest revenue growth since going public again in 2018. This growth is largely attributed to a surge in demand fueled by advancements in artificial intelligence. Dell has now revised its AI revenue forecast for the year to $60 billion, a notable increase from the previous estimate of $50 billion made in February. Meanwhile, the broader market is showing positive signs, with stock futures climbing higher ahead of the trading day. All three major indexes are poised for a successful week after recent gains. Investors are particularly attentive to the evolving geopolitical landscape, as Iranian state media reported missile strikes by Tehran against unidentified targets. This military action coincides with reports that the U.S. and Iran are nearing an agreement to resolve ongoing conflicts, pending final approval from President Donald Trump. On the economic front, inflation continues to impact American consumers. The Commerce Department revealed that the personal consumption expenditures price index increased by 0.4% in the past month, bringing the annual inflation rate to 3.8%, the highest level recorded since May 2023. Core inflation, which excludes volatile food and energy prices, rose by 0.2% in April, reaching an annual rate of 3.3%. As inflation presses on, families are finding it increasingly difficult to save, with the Bureau of Economic Analysis reporting a decline in the personal savings rate to its lowest since 2022. Rising costs in everyday living expenses, including gas and groceries, have outpaced wage growth, creating additional financial strain. In the retail sector, results varied, with American Eagle's shares dropping approximately 10% after reporting a revenue decline, despite efforts to boost marketing. Conversely, Gap’s brand performed well, achieving a 10% increase in comparable sales, although Old Navy's sluggish performance led to a lowered sales outlook, resulting in a 15% premarket drop in its shares. Best Buy, however, reported better-than-expected earnings, leading to a 15% rise in its stock price. Additionally, the Trump Accounts app is now available for families, marking progress toward the official launch of a tax-deferred investment account program set for July 4. This initiative will allow U.S. children with social security numbers to open accounts, with an initial $1,000 deposit for newborns eligible between 2025 and 2028, supported by various companies and philanthropists pledging to match those deposits for qualifying families.