Stocks Surge as AI and Tech Drive Market Gains

The S&P 500 hit a record high due to gains in AI-related stocks and chipmakers. While the Russell 2000 outperformed, major tech firms like Alphabet and Amazon also saw gains before their upcoming earnings reports. Despite some sector downturns, market confidence persisted, highlighting economic optimism.

The S&P 500 reached a record high on Monday, buoyed by a surge in chipmakers and AI-driven companies, with smaller firms also posting significant gains. The Russell 2000 index outperformed both the S&P 500 and Nasdaq, reflecting strong investor confidence in the economy.

Major players like Alphabet and Amazon saw their shares rise over 1% ahead of their quarterly reports, offering insights into the competitive AI sector. Palantir enjoyed an upward trend, climbing by 1.6% before its earnings announcement, while SanDisk, Advanced Micro Devices, and Micron Technology gained due to AI component demand.

Despite a downturn in energy stocks triggered by sliding oil prices, which President Trump's comments on Iran also influenced, the stock market largely pointed towards optimism. The S&P 500 saw substantial new highs, while factory activity grew, signaling economic resilience amid challenges.

(With inputs from agencies.)