U.S. stocks hit records as AI rally offsets oil risks

Traders Union
All News
Financial News
U.S. stocks hit records

Highlights

AI remains the main driver of global equities, with the S&P 500, Nasdaq, and Dow all trading higher.
Asian markets were mixed: Nikkei and Hang Seng rose, while Shanghai declined.
Oil prices rose as investors questioned whether Gulf diplomacy can reopen the Strait of Hormuz.
Friday’s U.S. jobs report is the week’s key economic event and may shape Fed rate expectations.

AI trade keeps driving markets

The S&P 500 rose 0.22% to 7,580.06, while the Nasdaq gained 0.20% to 26,972.62. The Dow Jones Industrial Average advanced 0.72% to 51,032.46, supported by broad market strength after a strong month on Wall Street. In May, the Nasdaq Composite surged more than 8%, the S&P 500 advanced about 5%, and the Dow added nearly 3%, with technology shares leading the gains.

The rally has not been limited to the United States, though global markets were mixed. Japan’s Nikkei rose 0.91% to 66,934.33, while Hong Kong’s Hang Seng gained 0.95% to 25,420.37. China’s Shanghai Composite slipped 0.27% to 4,057.74, and the FTSE declined 0.31% to 10,377.36.

Nvidia remained central to the AI trade as Chief Executive Jensen Huang prepared to speak at Computex in Taiwan. Investors are watching for signals on AI chips, robotics, and accelerated computing, areas seen as critical to the next stage of technology spending.

Oil rebound adds a risk premium

The equity rally is unfolding alongside renewed pressure in energy markets. West Texas Intermediate crude rose 1.8% to just below $89 a barrel, while Brent climbed 1.5% to about $92, after oil pulled back late last week. Traders continued to watch Gulf cease-fire talks and the Strait of Hormuz, a key route for global energy shipments.

President Donald Trump said he would meet advisers in the Situation Room to decide next steps on Iran while again calling for Tehran to be prevented from obtaining a nuclear weapon and for the Strait of Hormuz to reopen. Any delay in diplomacy remains a direct risk for inflation and fuel costs.

Fed outlook now runs through jobs data

The next test for markets is the U.S. nonfarm payrolls report on Friday. Strong hiring could support earnings optimism but complicate the case for rate cuts, while weaker data could revive concerns about growth.

For now, investors are betting that AI spending can keep lifting stocks even as oil near $90 a barrel threatens to keep inflation pressure alive.

In addition, we wrote that Nvidia aims to "reinvent the PC" with new processors.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.