AI Optimism Boosts U.S. Market Despite Inflation Fears

U.S. stocks saw a modest uptick on Monday, spurred by optimism in artificial intelligence, even as a previous earnings rally lost steam and rising crude oil prices reignited inflation concerns amidst stalled U.S.-Iran negotiations.

All three major U.S. stock indexes showed gains, with the S&P 500 and Nasdaq hitting record highs. The standout was the semiconductor sector, evidenced by a 2.6% surge in the PHLX Semiconductor index, illustrating the persistent enthusiasm for AI technology.

Investor Michael Burry issued a stark warning of an imminent market downturn. With the first-quarter earnings season drawing to a close—83% of S&P 500 companies surpassing expectations—attention shifts to macroeconomic factors and geopolitical uncertainties, notably the undulating oil prices impacting consumer prices and inflation.

(With inputs from agencies.)