U.S. stocks edge higher as AI rally meets Iran risk
U.S. stocks moved higher, with all three major indexes advancing as investors balanced continued enthusiasm for artificial intelligence against uncertainty over U.S.-Iran diplomacy and rising oil prices. The gains extended Wall Street’s record-setting run, supported by strong AI-linked earnings and demand for computing infrastructure.
Highlights
- U.S. stocks rose, with the S&P 500, Nasdaq, and Dow all posting gains.
- The S&P 500 climbed 0.13% to 7,609.78, while the Dow added 0.45%.
- AI-related earnings continue to support market sentiment.
- Oil near $96 to $98 a barrel keeps Iran and inflation risks in focus.
Indexes extend gains
The S&P 500 rose 0.13% to 7,609.78, while the Nasdaq added 0.03% to 27,093.901. The Dow Jones Industrial Average gained 0.45% to 51,307.79, reflecting broader market strength beyond technology shares, Yahoo!Finance reported.
Wall Street has been lifted by recent earnings from Dell and Hewlett Packard Enterprise, which showed that AI demand is boosting sales of servers and data-center equipment. Those results have reinforced the view that the AI trade is spreading beyond chipmakers into the broader infrastructure market.
Iran risk keeps oil in focus
The rally came despite continued uncertainty around U.S.-Iran talks. President Donald Trump has said negotiations are continuing “at a rapid pace,” but Israel’s campaign against Hezbollah in Lebanon has become a new obstacle to a lasting deal that could reopen the Strait of Hormuz.
Oil prices remained elevated as investors watched the diplomatic process. WTI crude traded above $96 a barrel, while Brent hovered near $98, keeping inflation risks in focus for equity markets.
Earnings and jobs data ahead
Investors are also watching the final stretch of earnings season, with Broadcom, CrowdStrike, and Macy’s scheduled to report. Broadcom and CrowdStrike will offer fresh signals on AI and cybersecurity demand, while Macy’s will provide a read on consumer spending.
The labor market is another key focus. ADP employment data are due Wednesday, ahead of Friday’s May jobs report, which could shape expectations for the Federal Reserve’s next policy moves.
Market rally faces its next test
A strong jobs report could reinforce confidence in the economy, but it may also complicate expectations for lower interest rates if inflation pressures persist. The main question for investors is whether AI momentum can keep supporting stocks while geopolitical risks push energy prices higher.
We have previously highlighted that Nvidia breakout tests Goldman Sachs $285 target.
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