US stocks closed slightly higher as investors monitored developments in stalled US-Iran peace talks.
All three major indices advanced, with the S&P 500 and Nasdaq recording fresh all-time closing highs.
Semiconductors led gains, with the PHLX Semiconductor index rising 2.6 per cent, highlighting continued strength in AI-linked stocks.
“The semis and AI infrastructure trade has taken on a life entirely of its own,” said Ross Mayfield, investment strategy analyst at Baird.
“And there's so much momentum… it seems almost somewhat divorced from any sort of headline or announcement.”
Rally faces growing scepticism
Despite continued gains, some investors warned the rally may be nearing its peak.
Investor Michael Burry said the surge in technology stocks could end abruptly.
“The market has jumped the shark,” he wrote.
The first-quarter earnings season is nearing completion, with 440 S&P 500 companies having reported.
Of those, 83 per cent have exceeded expectations, according to LSEG IBES.
Analysts estimate aggregate earnings growth of 28.6 per cent year-on-year, up sharply from earlier forecasts.
“The strength of the rally largely is a function of earnings growth, which is superb,” said Terry Sandven, chief equity strategist at US Bank Wealth Management.
Focus shifts to inflation and geopolitics
As earnings season winds down, investor attention is turning back to macroeconomic and geopolitical risks.
Oil prices rose after US-Iran negotiations stalled, raising concerns about persistent inflation.
President Donald Trump dismissed Iran’s response to a US peace proposal, contributing to the rise in crude prices.
Investors are now watching key economic data this week, including the Consumer Price Index and retail sales, for signs higher energy costs are feeding into broader inflation and consumer behaviour.
Producer prices and industrial output are also due.
Key indices and sector moves
The Dow Jones Industrial Average rose 95.31 points, or 0.19 per cent, to 49,704.47.
The S&P 500 gained 13.91 points, or 0.19 per cent, to 7,412.84, while the Nasdaq Composite added 27.05 points, or 0.10 per cent, to 26,274.13.
Among sectors, energy stocks posted the largest gains, while communication services lagged.
Market breadth and outlook
Declining stocks outnumbered advancers on both the NYSE and Nasdaq.
The S&P 500 recorded 39 new 52-week highs and 42 new lows, while the Nasdaq posted 157 highs and 164 lows.
Trading volume on US exchanges totalled 21.42 billion shares, above the 20-day average of 17.99 billion.
Investors will also be watching upcoming talks between US President Donald Trump and China’s President Xi Jinping, expected to cover issues including trade, artificial intelligence and the Iran conflict.
