The S&P 500 reached new record highs, driven by easing stagflation fears as oil prices declined and optimism grew over a potential US-Iran deal, according to Deutsche Bank analysts [1]. The index gained 1.43% last week, marking its ninth consecutive weekly advance—the longest such streak since 2023 [1]. On Friday alone, the S&P 500 rose 0.22% [1]. Futures for the S&P 500 and Nasdaq were also modestly higher this morning, up 0.25% and 0.52% respectively, supported by strength in technology and AI-related stocks [1].
Tech stocks outperformed, with the NASDAQ climbing 2.39% last week and 0.20% on Friday [1]. The Philadelphia semiconductor index surged 22.2% in total return terms in May, reflecting renewed excitement around AI [1]. The rally extended globally: Japan’s Nikkei advanced 4.72% last week (2.53% on Friday), while Europe’s STOXX 600 posted a modest 0.14% gain [1]. South Korea’s KOSPI was a standout, rising 28.5% last week and bringing its year-to-date gains to 102.4% in just five months [1].
Brent crude oil prices rose 2.4% this morning, but this increase has not significantly impacted equities, as Asian markets remain strong, largely due to the AI trade [1]. The Hang Seng index gained 0.88%, and the Nikkei rose 0.85%, while mainland Chinese markets were slightly lower, possibly due to flat PMI data [1].
Overall, the market sentiment is positive, with optimism over the geopolitical situation and AI-related growth driving equities higher across major global indices [1].
CONCLUSION
The S&P 500's record-setting streak reflects easing stagflation concerns and robust optimism in technology and AI sectors. Global equities, particularly in Asia, have also benefited from these trends, with notable gains in the KOSPI and Nikkei. Market sentiment remains upbeat, supported by positive momentum in tech and AI-related stocks.