AI Euphoria and Peace Hopes Propel Market Surge

The S&P 500 and Nasdaq reached new record highs on Wednesday, fueled by excitement surrounding artificial intelligence and a potential peace agreement between the U.S. and Iran. Enthusiasm for AI investments continues to guide market trends, with Advanced Micro Devices' promising second-quarter revenue prediction adding to the fervor.

Oil prices plunged to a two-week low, impacting the energy sector, as negotiations between Washington and Tehran progressed toward a memorandum to resolve ongoing conflicts. Hopes are pinned on formal peace talks that could stabilize the region and ease market tensions.

However, while investor appetite remains strong, financial analysts caution against unjustified optimism without tangible developments in earnings or geopolitical stability. Markets remain sensitive to the possibility of renewed Middle Eastern hostilities, which could erase recent gains.

(With inputs from agencies.)