Semiconductor Strength Keeps Market at Record Highs Despite Rising Oil Prices

The stock market opened the week on a mixed but resilient note, as continued leadership from semiconductor stocks helped the major indices grind out modest gains despite uneven participation across the broader market. The S&P 500 and Nasdaq Composite each edged higher to fresh record closes, while the Dow Jones Industrial Average also finished slightly positive.

Chipmakers once again remained at the center of the rally. The PHLX Semiconductor Index climbed 2.3%, extending the sector’s powerful momentum and helping lift the information technology sector to one of the session’s strongest performances.

Lumentum Holdings emerged as the top-performing stock in the S&P 500 after news that the company will join the Nasdaq-100 Index next week. Meanwhile, Coherent Corp. and Qualcomm rallied sharply following reports that executives from both firms were invited to accompany President Trump on his upcoming trip to China later this week.

Memory-chip names also extended their remarkable run, while NVIDIA continued to provide steady mega-cap leadership. The AI trade remained firmly intact, with investors continuing to favor semiconductor and infrastructure-related names tied to the ongoing data-center buildout cycle.

That trend also boosted electronic equipment and power infrastructure companies. Vertiv Holdings surged more than 8% as investors increasingly view AI-driven infrastructure spending as a major long-term growth catalyst, helping the industrials sector post a solid gain.

The materials sector also outperformed thanks to strength in chemical and precious metals companies, while the energy sector led all sectors higher as oil prices climbed on renewed geopolitical concerns.

Energy markets reacted sharply after President Trump criticized Iran’s response to the latest U.S. peace proposal as “totally unacceptable,” later warning that the current ceasefire agreement is on “massive life support.” Crude oil futures rose 2.8% to settle above $98 per barrel, reigniting concerns about inflation and geopolitical instability.

Despite the rise in oil prices, losses across the broader market remained relatively contained. Five S&P 500 sectors finished lower, though only the communication services sector posted a decline greater than 1%.

Alphabet weighed heavily on the sector, while Netflix declined after the Texas Attorney General filed a lawsuit against the company. The Trade Desk also came under pressure following a downgrade from HSBC.

One notable bright spot within the sector was Fox Corporation, which rallied strongly after topping earnings expectations.

Elsewhere, Tesla helped limit losses in the consumer discretionary sector, standing out as one of the few “Magnificent Seven” names to post a strong gain during an otherwise softer session for mega-cap growth stocks.

With earnings season beginning to slow down, investor focus may increasingly shift back toward macroeconomic and geopolitical developments. Attention now turns to tomorrow’s April CPI report, which could provide critical insight into how rising energy prices are affecting inflation trends.

Even with the subdued finish, the broader market continues to demonstrate resilience. Semiconductor leadership, AI enthusiasm, and persistent strength in large-cap technology stocks remain powerful drivers supporting the market’s uptrend as equities continue hovering near record highs.

Our FTinvest 11 model portfolio declined 1.47% to close at 1,021.14, marking the sharpest daily pullback since the portfolio reached its recent all-time high of 1,041.22. The move pushed the index further away from record territory, reflecting renewed short-term market pressure after several weeks of strong performance.

So far, FTinvest 11 is now up approximately +10.02% year-to-date, continuing to maintain solid double-digit gains despite the recent decline. While momentum has softened in the short term, the portfolio’s disciplined, value-driven strategy remains intact as it navigates a more volatile market environment.