AI Stocks Soar as Markets React to Iran Tensions

US equity markets experienced a mixed trading session, with technology stocks leading the charge. The S&P 500 and Nasdaq Composite both reached fresh intraday record highs, driven by strong performance in AI-related equities. Micron Technology was a standout performer, its stock jumping 17% and pushing the company's market capitalization beyond $1 trillion. Other memory chip companies like Seagate Technology and Western Digital also saw gains, contributing to a record high for the Roundhill Memory ETF.

Information technology was not the only sector to see positive movement; space exploration companies also posted gains. Intuitive Machines and Planet Labs experienced significant upticks, while Rocket Lab also rose. Within the S&P 500, six out of eleven sector indexes closed higher, with the IT sub-index showing a notable 1.7% increase.

Simultaneously, the market closely watched developments regarding US-Iran relations. President Donald Trump indicated that negotiations to end the conflict were progressing positively, though he warned of potential forceful action if talks failed. In parallel, the US reported executing a 'self-defense' strike in southern Iran. The prevailing sentiment among investors is that a swift resolution to the conflict could mitigate market risks, although underlying concerns about inflation and interest rates continue to loom.

Commodity markets saw a notable rise in crude oil prices, with Brent crude approaching $100 per barrel, a nearly 4% increase. This surge occurred against a backdrop of heightened tensions in West Asia. Conversely, West Texas Intermediate (WTI) crude experienced a decline of over 2%.