S&P 500, Nasdaq hit highs as chip stocks climb

Summary

U.S. stocks edged higher, with chipmakers leading gains as investors weighed record indexes, higher oil prices, and upcoming inflation data.

Why this matters

The story shows that gains in AI-related stocks continued to support major indexes even as oil prices and geopolitical tensions raised inflation concerns. Investors may use this week's inflation and spending data to assess whether the rally can continue.

Wall Street rose modestly on Monday, as momentum from a strong earnings season eased and investors weighed higher crude prices linked to stalled U.S.-Iran peace talks and the continued closure of the Strait of Hormuz.

Artificial intelligence-related stocks remained strong, with chipmakers outperforming the broader market.

All three major U.S. stock indexes rose, and the S&P 500 and Nasdaq were on track for their latest record closes.

As of Friday, analysts expected aggregate first-quarter earnings growth for the S&P 500 of 28.6% from a year earlier, up from 14.4% estimated on April 1.

With earnings season winding down, investor attention was shifting back to economic data and geopolitical developments.

President Donald Trump dismissed Iran’s response to a U.S. peace proposal, sending crude prices higher and raising concerns that a prolonged conflict could add to inflation, particularly through gasoline prices.

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