The S&P 500 breached 7,600, marking its longest winning streak since May 2025, driven by renewed interest in artificial intelligence. Tech stocks, particularly chipmakers, led this rally, with a gauge of chipmakers increasing by nearly 6%. Marvell Technology Inc. surged 33% after Nvidia Corp.'s CEO, Jensen Huang, predicted a $1 trillion valuation for the company. Hewlett Packard Enterprise Co. also saw a jump after it raised its AI-fueled sales forecast, indicating strong market confidence in the AI sector.
Oil prices witnessed fluctuations throughout the period. In early June, oil held gains amidst confusion about geopolitical conflicts, while by late June, US oil steadied after declining almost 3% on a Monday, influenced by optimism surrounding peace talks between the US and Iran. However, earlier in March, oil prices surged, with WTI closing above $81 a barrel and hitting $80 a barrel for the first time since January 2025, due to escalating war with Iran and concerns about supply.
The broader market presented a mixed picture. While AI-driven tech stocks showed strength, other segments faced pressure. In March, chip stocks experienced a rout due to news that the US was considering requiring permits for sales of chips from companies like Nvidia and AMD, causing significant drops for these firms. This policy, aimed at restricting AI chip exports, contributed to a lot of pain among chipmakers despite strong sales forecasts from some companies like one CEO predicting over $100 billion in AI chip sales next year.
