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(Bloomberg) — The rally in US stocks is set to stretch into a fifth day as optimism around artificial intelligence, lower oil prices and easing bond yields spurred traders to grow increasingly bullish.
Contracts on the S&P 500 rose 0.3%, while those for the Nasdaq 100 climbed 0.4%, after the relentless advance in chipmakers fueled both gauges to another round of record highs. South Korea’s SK Hynix Inc. joined US memory peer Micron Technology Inc. above the $1 trillion market-capitalization mark. Autos and consumer stocks drove a 0.4% gain in Europe.
With little overnight news from the Middle East, optimism that the US and Iran are nearing a deal to fully reopen the Strait of Hormuz pushed Brent down 3.1% to below $97 a barrel. The dollar was little changed. Bonds continued their rebound, with the 10-year Treasury yield two basis points lower at 4.46%.
The moves reinforced momentum behind the AI trade, with investors betting that chipmakers will capture an outsized share of global capital spending. Hopes that oil flows from the Middle East will normalize soon added to the upbeat mood as traders grew less concerned about an energy-driven spike in inflation.
