Wall Street Reaches Fresh Record Highs
The S&P 500 closed above 7,540 points, while the Nasdaq surpassed 26,200 points, both setting new records. Investors were encouraged by expectations of strong second quarter earnings, with analysts forecasting 23 percent year on year profit growth for S&P 500 companies.
Oil Prices Surge on Middle East Tensions
Brent crude climbed above 75 dollars per barrel, gaining nearly 6 percent during the week after renewed geopolitical tensions around Iran and the Strait of Hormuz raised concerns over global supply disruptions. Rising energy prices reignited inflation worries across major economies.
AI and Semiconductor Stocks Experience Sharp Correction
Major semiconductor companies witnessed significant declines as investors took profits following an extended AI rally. The Nasdaq briefly fell almost 2 percent, while several Asian chip stocks lost between 5 and 10 percent, making technology the week’s most volatile sector.
U.S. Dollar Weakens as Rate Cut Expectations Rise
The U.S. Dollar Index slipped below 96 points, its lowest level in several months. Markets increased expectations for a Federal Reserve rate cut later in the year as softer economic data and moderating inflation strengthened the case for easier monetary policy.