The S&P 500 reached a new record high, extending its year-to-date gain to nearly 10%, driven by renewed enthusiasm for artificial intelligence (AI) and easing concerns over US-Iran tensions, according to Deutsche Bank analysts [1]. The rally was led by chipmakers, with the Philadelphia semiconductor index surging 5.53% and the Nasdaq rising 1.19% [1]. Micron Technology (MU) stood out with a 19.3% gain on the day and an 859% increase over the past year [1][3]. UBS tripled its price target for Micron, further fueling the stock's rally [3].
In Asia, South Korea's KOSPI index soared 2.25% to near 8,230, propelled by a broad-based rally in chipmakers and related stocks [2]. SK Hynix (000660.KS) joined the $1 trillion market capitalization club, following Samsung Electronics (005930.KS), which achieved this milestone earlier in the month after reporting an eight-fold increase in Q1FY2026 operating profits [2]. SK Hynix's surge was attributed to robust demand for high-bandwidth memory chips used in AI servers and accelerators [2][3]. Shares in SK Hynix have risen over 250% so far this year [3].
Despite the positive momentum in equities, uncertainty persists regarding US-Iran relations. While optimism over a potential deal helped lift markets, tensions escalated after US attacks on southern Iran, which Iran condemned as a 'gross violation' of a ceasefire [2]. Negotiations toward a permanent deal are reportedly ongoing, with the unfreezing of Iran's funds cited as the last major sticking point, though there has been no official confirmation [2].
Across broader markets, Japan and South Korea hit fresh record highs, while US equity futures remained flat after the S&P 500's record close [1][3]. In China, industrial profits surged 24.7% in April, and computing and electronics equipment manufacturing earnings nearly doubled year-on-year [3]. European markets were poised for a mixed open as investors weighed global developments [3].
CONCLUSION
AI-driven demand for semiconductors has propelled both US and Asian equity indices to record highs, with Micron and SK Hynix joining the $1 trillion market capitalization club. Despite ongoing geopolitical uncertainty between the US and Iran, investor optimism around technology and chipmakers remains strong, supporting robust market performance. The market's focus remains on AI growth and the evolving geopolitical landscape.