Stock Market Impact: S&P 500, Nasdaq, and Dow all reached all‑time highs (7,584.56; 26,985.94; 51,026.66) marking a nine‑week winning streak for U.S. equities.
Geopolitical Influence: Markets rallied on expectations of a U.S.–Iran cease‑fire deal; President Donald Trump announced a meeting in the Situation Room to make a final determination.
Oil Prices: Brent crude fell 1.9% to $90.90/barrel and WTI fell 1.8% to $87.28/barrel, easing inflationary pressure.
Macro‑Economic Context: The Fed’s preferred inflation gauge hit its highest level since November 2023 on a year‑over‑year basis in April, though month‑on‑month growth slowed, keeping expectations of further rate hikes elevated.
Sectoral Drivers: AI‑related stocks surged – Dell +30.42%, Okta +29.48%, Super Micro Computer +10.96%, Hewlett Packard Enterprise +11.80%, HP +9.26%; retail apparel Gap fell 17.5% after cutting its annual sales outlook.
Overall Rally: The S&P 500 is up roughly 16% since the end of March, buoyed by a strong earnings season and unprecedented spending on AI infrastructure.
