Stocks in New York climbed to new record levels as investors continued to place strong confidence in the technology sector, with artificial intelligence once again emerging as one of the main drivers of market momentum.
The Nasdaq gained 1.5 percent over the week, supported largely by chipmakers and companies linked to AI infrastructure. The S&P 500 also ended higher, rising 0.6 percent. Since late March, the Nasdaq has recovered by almost 20 percent, restoring its role as a leading force behind the broader U.S. stock market.
The rally comes despite continued geopolitical uncertainty. Tensions in the Middle East remain a key risk for investors, particularly as talks between Iran and the United States appear stalled. The situation has also had a direct impact on energy markets, where prices have moved sharply higher because of disruptions linked to the Strait of Hormuz.
U.S. crude oil, known as WTI, rose by around 13 percent to about $94 per barrel, while Brent crude climbed 17 percent, reaching roughly $105 per barrel. The increase reflects market concerns that any prolonged blockage of the Strait of Hormuz could affect global energy supply and add pressure to inflation.
Even so, investor sentiment on Wall Street has remained positive. Much of that confidence is tied to expectations that artificial intelligence will continue to generate strong revenue growth for major technology companies. After a period of concern over the size of AI-related spending, recent corporate updates have helped convince markets that those investments may translate into higher profits.
Analysts also point to more reasonable valuations in the technology sector compared with last year’s peak. The expected price-to-earnings ratio for the information technology sector over the next 12 months is around 22 times earnings, well below the previous high of 31.8 times.
This week, markets will closely watch earnings reports from major technology companies. Their results could determine whether the current rally continues or whether investors begin to reassess the strength of the AI-driven boom.
