AI Frenzy and Falling Oil Prices Send Stocks to Fresh Record Highs

Wall Street extended its powerful rally as strong earnings, easing oil prices, and renewed enthusiasm around artificial intelligence pushed major indices deeper into record territory. The S&P 500 gained 1.5%, while the tech-heavy Nasdaq Composite surged 2.0% behind another wave of semiconductor leadership. The Dow Jones Industrial Average also joined the advance, climbing 1.2% and briefly reclaiming the 50,000 level intraday.

Semiconductor stocks once again led the market higher, with the PHLX Semiconductor Index soaring 4.5%. The broader information technology sector (+2.6%) ranked among the session’s strongest performers as investors piled back into AI-driven growth names.

Advanced Micro Devices delivered one of the day’s biggest catalysts after posting a blowout quarterly report that sparked a wave of analyst upgrades. The stock surged nearly 19%, lifting peers including Arm Holdings and Intel sharply higher as confidence in AI infrastructure spending continued to build.

AI-related momentum extended across the broader semiconductor ecosystem. Super Micro Computer rallied more than 24% following earnings, while Corning jumped after announcing a long-term manufacturing partnership with NVIDIA aimed at expanding U.S.-based AI infrastructure production.

Software stocks lagged the chip rally, however, with the iShares Expanded Tech-Software Sector ETF slipping modestly as investor flows rotated more aggressively toward semiconductor and hardware names.

Outside of technology, participation remained broad and constructive. Nine of the eleven S&P 500 sectors finished higher, reinforcing the market’s increasingly risk-on tone.

The industrials sector (+2.6%) matched technology for the strongest sector performance of the session. Uber Technologies led the advance after delivering an impressive earnings report, while airlines and home-improvement companies benefited from sharply lower energy prices.

Oil prices fell significantly as optimism surrounding U.S.-Iran negotiations improved sentiment across global markets. Crude oil futures dropped 6.8% to settle at $95.22 per barrel after President Trump announced the suspension of U.S. naval escorts through the Strait of Hormuz, citing progress toward a potential diplomatic agreement.

Although Iranian officials later pushed back against U.S. demands, President Trump told Fox News he remains “cautiously optimistic” that a deal can ultimately be reached.

The sharp decline in oil prices weighed heavily on the energy sector, which fell 4.1% and finished as the market’s weakest group. Meanwhile, lower fuel costs boosted economically sensitive industries such as cruise lines, airlines, and homebuilders, helping the consumer discretionary sector gain 1.4%.

Elsewhere, Walt Disney Company rallied strongly following its first earnings report under new CEO Josh D’Amaro, driving gains in the communication services sector. The materials sector also posted solid gains thanks in part to a massive post-earnings rally in International Flavors & Fragrances.

Smaller-cap stocks participated in the rally as well, with the Russell 2000 and S&P MidCap 400 both delivering strong gains that mirrored the broader market’s bullish tone.

Overall, the session highlighted the market’s continued confidence in the AI-driven growth story and the strength of the current earnings cycle. Falling oil prices, improving geopolitical sentiment, and expanding participation across sectors continue to reinforce the bullish backdrop as equities push further into record territory.

Our FTInvest 11 model portfolio surged 1.58% to close at 1,041.22, setting a new all-time high and surpassing the previous record of 1,039.51 reached in February. The strong advance marks a decisive breakout and confirms the portfolio’s continued upward momentum after recovering from the March correction.

Based on the start-of-year level of 928.18, FTInvest 11 is now up approximately +12.18% year-to-date, reinforcing its strong performance in 2026. Reaching a new record high highlights the resilience of the portfolio and the effectiveness of its disciplined, value-driven strategy amid evolving market conditions.