Stock Markets Hit Record Highs Amid Mixed Signals on Iran War and Tech Strength
The S&P 500 and Nasdaq reached fresh all-time records on Monday as semiconductor stocks surged and markets shrugged off oil price increases following geopolitical tensions. The rally reflects strong earnings and AI-driven investment optimism, though inflation concerns persist.
Market Records and Tech Dominance
The S&P 500 rose on Monday, bolstered by key tech stocks, even as oil prices rose after President Donald Trump rejected Iran's latest proposal to end the war. The broad market index gained 0.19% and closed at 7,412.84, while the Nasdaq Composite inched up 0.1% to end at 26,274.13. Both indexes had scored fresh all-time intraday highs during the session, and they closed at records.
Semiconductor and AI Investment Surge
The AI trade continues to rise as chip stocks climbed higher on Monday. Memory maker Micron (MU) posted a new record. JPMorgan Private Bank said in its 2026 mid-year outlook released on Monday that the "AI supercycle may just be getting started."
Energy Market Impact
Oil surged after US President Donald Trump rejected Iran's latest response to his proposal to end the war in the Middle East, prolonging the effective closure of the crucial Strait of Hormuz. Brent (BZ=F) crude advanced as much as 3.5% to $104.80 a barrel, while West Texas Intermediate (CL=F) climbed to near $99.
Global Market Performance
South Korea's Kospi opened at a fresh record Monday, leading gains in Asia-Pacific markets amid rising oil prices and escalating tensions between the U.S. and Iran. South Korea's Kospi gained 4.70% after opening to a fresh record, while the small-cap Kosdaq was 0.30% lower. Index heavyweight SK Hynix rose 10.74%, tracking U.S. chip-related equities which surged Friday.