[New York Stock Exchange] S&P 500, Nasdaq Hit Record Highs... AI Boom Eclipses War Risks

International Oil Prices End Higher
Micron and Nvidia Surge
10-Year U.S. Treasury Yield Rises

Despite U.S. President Donald Trump stating that the ceasefire with Iran remains precarious, all three major U.S. stock indices closed higher on the 11th (local time). Notably, both the S&P 500 and the Nasdaq set new all-time highs.

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average finished at 49,704.47, up 95.31 points (0.19%) from the previous trading day. The large-cap-focused S&P 500 index rose 13.91 points (0.19%) to close at 7,412.84, while the tech-heavy Nasdaq gained 27.049 points (0.10%) to end at 26,274.125.

The U.S. stock market showed some hesitation in response to President Trump's remarks. When asked by reporters at the White House about the ceasefire situation with Iran, President Trump described it as "incredibly weak, the weakest state." He added, "The ceasefire is heavily dependent on life support, and a doctor has come in to say there is about a 1% chance."

Mark Haefele, Chief Investment Officer at UBS, stated, "The agreement remains uncertain and highly risky," adding, "Both sides are under pressure to finalize the deal."

As a result, international oil prices rose. This is interpreted as being due to renewed concerns over energy supply disruptions amid forecasts that the blockade of the Strait of Hormuz will persist.

On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for June delivery closed at $98.97 per barrel, up 2.8% from the previous session. July Brent crude on the ICE Futures Exchange settled at $104.21 per barrel, up 2.9% from the previous day.

According to the median estimate from a Bloomberg survey, economists expect the Consumer Price Index (CPI) for April to increase by 0.6%. This follows the sharpest rise since 2022, which was recorded in March.

On this day, the yield on the 10-year U.S. Treasury note stood at 4.411%, up 1.08% from the previous session. The yield on the 30-year U.S. Treasury bond was 4.982%, up 0.71% from the previous session.

Jay Hatfield, founder and CEO of Infrastructure Capital Advisors, commented, "The tech boom is so strong that high energy prices are unlikely to have any impact on the U.S. economy or the U.S. stock market," adding, "Everyone is turning their attention to issues in the Middle East."

These movements follow gains of more than 2% and 4% last week for the S&P 500 and Nasdaq, respectively. Both indices posted six consecutive weekly gains for the first time since 2024.

Micron Technology saw its share price jump 7% on the strength of memory chip demand. Nvidia, the largest company by market capitalization, also closed up 1.95%. Energy stocks also finished higher, with ExxonMobil up 3.31%, Chevron up 1.66%, and Lockheed Martin up 1.53%.

Meanwhile, Wall Street continues to raise its S&P 500 index targets. HSBC revised its year-end S&P 500 target up from 7,500 to 7,650. Ed Yardeni, Chief Investment Strategist at Yardeni Research, also raised his index target for the same period from 7,700 to 8,250.

Strategist Yardeni explained, "I have never seen corporate earnings expectations revised upward as quickly as in recent months," adding, "As a result, the stock market is experiencing a sharp rally led by earnings."