US futures are trading at new all-time highs following Tuesday’s record-setting rally (when the S&P hit a new record high on negative breadth as is now the norm) , bolstered by a growing chorus of Wall Street bulls: Goldman lifts its S&P 500 target, while Barclays strategists say investors still have capacity to chase the rally, while the memory bubble just keeps raging as the market value of Korea's SK Hynix sailed above the trillion-dollar mark just one day after fellow chip maker Micron did the same. As of 8:00am, S&P 500 futures are up 0.3% while Nasdaq 100 contracts are rising 0.4%. And speaking of Micron, after soaring more than 20% on Tuesday, MU shares shares are up another up another 5% in premarket because why not, and point to a continuation of the bubble in memory-chip stocks; Semis are also bid (SOXX +2%); cyclicals are set for another positive session led by Discretionary, Industrials, and Materials. In Defensives, both HC and Staples are positive but underperforming SPX. European and Asian stocks also climb as broader risk sentiment is underpinned by a pullback in oil prices on the now daily optimism that the US and Iran will reach a peace deal. US yields are down 1-2bps even with the Bloomberg Dollar Spot index up to session highs. Brent crude futures for July are down 3% to around $96.70 a barrel. Ags are weaker, with Metals being pulled lower, too while precious metals tumble. Today's economic data slate includes weekly ADP employment change (8:15am), May Richmond Fed manufacturing index (10am) and May Dallas Fed services activity (10:30am). Fed speaker slate includes Cook (3:55pm), Jefferson (8pm) and Goolsbee (10:25pm).In premarket trading, Mag 7 stocks are mixed early Wednesday (Alphabet -0.5%, Nvidia +0.4%, Apple +0.1%, Tesla +1.6%, Amazon +0.02%, Microsoft -0.5%, Meta -0.5%)Box (BOX) shares are down 2% after the software company’s first-quarter results were largely in line with expectations. Analysts noted an impact from foreign-exchange issuesShares in rocket, space and satellite communications companies (LUNR +17%, RDW +20%, ASTS +6.1%) are rallying in premarket trading Wednesday, set to extend recent gains. The sector has advanced since SpaceX filed publicly for what stands to be the largest-ever initial public offering.Shares in semiconductor and chip equipment companies (POWI +7.0%, SMTC +5.4%, MRVL +5.7%) are rising again as the breakneck surge in the sector intensifies, sending the market capitalizations of SK Hynix and Micron Technology above $1 trillion.Verra Mobility (VRRM) shares tumble 43% after the mobility software company cut full-year adjusted EPS guidance below analyst estimates and said Avis Budget had terminated its contract, prompting at least three analyst downgrades.Zscaler (ZS) shares sink 22% after the security software company gave a fourth-quarter revenue forecast that was weaker than expected. Evercore downgrades the stock, noting slowing net new customers.In other corporate news, Samsung Electronics union members voted in favor of a compensation deal, staving off a strike that threatened to disrupt global chip supply. They will get over $300,000 as part of the deal. And China is said to have been slow-walking approval of Airbus plane deliveries to signal impatience with how long European regulators are taking to certify Chinese-made aircraft. In AI news, ByteDance is planning to sharply increase its capital spending this year and next in a bid to lead the Chinese AI market and challenge the top US players abroad. Software companies and their private equity investors will face mounting strains as debt redemptions swell in coming years, according to Canadian investment manager CI GAM. “Given the capex plans of the AI hyperscalers, there’s no reason to think that the rally is about to end,” said Fares Hendi, a portfolio manager at Societe de Gestion Prevoir in Paris. “If there’s a breakthrough between the US and Iran, the trend could accelerate, with investors buying back their shorts.”With no 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 2.6% to around $97 a barrel as traders grew less concerned about an energy-driven spike in inflation. Sentiment was further boosted by the batshit insane meltup in Korea (just two stocks technically) which has made the Nasdaq bubble of 1999 look like amateur hour. Strategists at Goldman joined peers at Morgan Stanley and Deutsche Bank in seeing a 17% return for the S&P 500 Index this year. Earnings growth powered by the AI boom will drive further gains in stocks, the Goldman team led by Ben Snider said, as they increased their year-end target for the US benchmark to 8,000 points, ditching a previous forecast of 7,600. “We are in the midst of something very structural and huge — the AI CapEx theme — and it’d be very dangerous to stand against it,” said Lilian Chovin, head of asset allocation at Coutts. In other words, just put a blindfold on and buy. Meanwhile, the momentum behind the AI trade continued, with investors betting that chipmakers will capture an outsized share of global capital spending even as millions of furious workers are fired and eager to burn down every data center they see. Adding to the insanity, BBVA strategists said it could be a good time to sell US equity volatility, noting short vol portfolios have the strongest overall forward signal compared to other risk premia strategies. Since 1990, VIX has tended to drop in June and July, before rising again in August and September, according to data compiled by Bloomberg. Let's just ignore that whole other "sell in May" calendar thingy. Meanwhile, the excess capital chasing AI assets is creating a liquidity overhang and driving up risk for investors, notes GGL Capital’s founder Gigi Luk.Shares in semiconductor and chip equipment companies are rising again as the surge in the sector intensifies, sending the market capitalizations of SK Hynix and Micron Technology above $1 trillionWith bullish sentiment running high, the European Central Bank said that financial markets are in danger of a sudden and significant correction, warning that investors are downplaying a range of threats from the Iran war to fiscal pressures.The “question is how soon, or whether we will go back to a pre-conflict situation with regard to Hormuz, and that’s where we are cautious,” said Chovin. “The disruption to commodities will remain fairly high even if a deal is made.”European stocks are also climbing as broader risk sentiment is underpinned by a pullback in oil prices on optimism that the US and Iran will reach a peace deal. The Stoxx 600 is up 0.3% with autos leading gains after data showed a third consecutive rise in European car sales, while energy stocks lagged. Here are some of the biggest movers Wednesday:Akzo Nobel rose as much as 17%, the most since 2017, after the company said that on May 1 it rejected a conditional and non-binding proposal from Nippon Paint Holdings Co and The Sherwin-Williams CompanyCohort shares rose as much as 15%, the most in 10 months, after the UK defense tech firm issued a trading update which showed revenue and profit ahead of expectationsPets at Home shares reverse initial losses to rise as much as 5.2% after the retailer posted in-line profits for FY26 and highlighted continued growth in its Retail arm, which analysts say shows that a turnaround plan is gathering momentumHollywood Bowl rose as much as 10%, the most since Feb. 2021, after first-half results that analysts said reinforced the investment case for the bowling-center operatorMPC Container Ships advanced as much as 9.1%, reaching the highest since November 2024, after releasing first-quarter results which DNB Carnegie sees as strongHansa Biopharma shares rose as much as 8.3% after the Swedish company said the primary objective of a post-authorization efficacy study for its desensitization treatment Idefirix for kidney transplant patients was metCD Projekt gained as much as 3.5% in early trading in Warsaw after Poland’s biggest computer-game maker invited fans to a “special anniversary stream” for The Witcher 3: Blood and WineNaturgy shares fell as much as 4.7% after CVC Capital Partners divested its 13.8% stake in the Spanish utility after eight years as a key investorFlow Traders shares fell as much as 11%, the most since Oct. 30, after ING cut the Dutch electronic trading firm to sell from hold, saying its market share has continued to erode despite higher trading capitalRusta fell as much as 6.3%, to the lowest since March, after Danske Bank cut its recommendation on the Swedish discount retailer to hold from buyReinet Investments was the worst-performing stock in Johannesburg, declining as much as 10%, the most since March 2020, after the firm said full-year 2026 net asset value declined 4.5% from the previous comparable periodAsian stocks jumped as investors boosted demand for the region’s chipmakers during the artificial intelligence boom, while sentiment remained broadly positive on prospects for a US-Iran peace deal. The MSCI Asia Pacific Index climbed as much as 1.7% to a fresh record. The gauge is headed for a fifth-straight session of gains, which would mark its longest win streak since February. South Korea’s Kospi surged 2.3%, leading advancers in the region, while Taiwan’s benchmark climbed 1.7%. Extended tech optimism pushed SK Hynix’s market value to more than $1 trillion, following Micron Technology’s climb to that level on Tuesday in the US. Meanwhile, oil slipped on optimism that the US and Iran will reach a peace deal despite fresh hostilities. Elsewhere in Asia, Chinese stocks in Hong Kong fell, weighed down by losses in tech heavyweights including Xiaomi. Markets in Singapore, Philippines, Indonesia and Malaysia were closed for holidays.In FX,the dollar was little changed on the day as one of the biggest trends in the FX market faces significant pressure. AUD/NZD, which has risen more than 15% since April 2025, is set to drop by the most in a year due to rate-differentials repricing; the pair drops as much as 1% to 1.2157, after rising earlier to its highest level since April 2013 at 1.2288 The RBNZ left interest rates unchanged as expected but signaled it will most likely need to raise them soon, while Australia’s headline CPI data for April was lower than expected, spurring traders to dial back expectations for RBA rate hikes this year. “No surprise in the unchanged RBNZ OCR, but the uplift to the implied OCR track, plus the fact three members voted for an immediate hike, gives this a bullish hue, with a 8 July hike now seen much more likely than not,” said Ray Attrill, head of FX strategy at National Australia BankIn rates, treasuries hold slight gains with futures just off session highs and yields richer by 1bp to 2bp across the curve. US 10-year yield near 4.47% is 1bp lower on the day, trailing UK counterpart by about 3bp and German by less than 1bp; curve spreads are little changed, 5s30s near 85bp and 2s10s around 44bp. Gilts outperform Treasuries, supported by further oil-price declines on hopes that the US and Iran will reach a peace deal despite fresh hostilities. IG dollar issuance slate includes a handful of names already. Ten deals were priced Tuesday totaling $12.9 billion. Issuers paid less than 1bp in new issue concessions on deals that were 4.6 times covered, and at least one issuer stood down. US session includes $70 billion 5-year note auction at 1pm New York time, which follows Tuesday’s 2-year which stopped on the screws (WI 5-year yield near 4.16% is about 20bp cheaper than last month’s, which tailed by 0.5bp) and three scheduled Fed speakers. In commodities, WTI crude oil futures are down almost 4%. Brent crude futures for July are down 3.5% to around $96 a barrel. Gold tumbled more than 3% as it is now used to fund the memory bubble.Today's economic data slate includes weekly ADP employment change (8:15am), May Richmond Fed manufacturing index (10am) and May Dallas Fed services activity (10:30am). Fed speaker slate includes Cook (3:55pm), Jefferson (8pm) and Goolsbee (10:25pm).Market SnapshotTop Overnight NewsHong Kong banks are increasing scrutiny of mainland Chinese clients. Some major lenders suspended the opening of investment and wealth management accounts for mainland residents. BBGTaiwan prosecutors suspect Nvidia chips were smuggled to China via Japan. BBGAustralia’s consumer-price growth slowed in April following a temporary fuel tax cut, but stayed high enough to keep the door open to further rate increases by the central bank. The consumer-price index rose 4.2% over the 12 months through April, down from 4.6% for the year through March. WSJThe Reserve Bank of New Zealand maintained the official cash rate at 2.25% for the third meeting in a row, as it weighs the threat to the South Pacific economy from higher prices of everything from motor fuels to freight against the damping effect rising inflation can have on demand. WSJUkraine has a six-month window in which to seize the battlefield initiative from Russia and strengthen its hand for peace talks, a senior commander told Reuters, predicting a "turning point" was imminent after more than four years of war. RTRSRussia is stuck on the Ukrainian battlefield and lashing out with massive strikes on Kyiv. The growing fear in European capitals is that President Vladimir Putin will try next to reshuffle the cards by expanding the conflict to Europe. WSJSK Hynix and Micron each topped $1 trillion in value for the first time as investors continued to bet on the AI boom. BBGUS Customs said about $20.6 billion in tariff refunds is headed to importers filing claims through its new web portal. However, earlier refund processing values were far lower than previously thought. BBGGoldman raised its S&P price target from 7600 to 8000: "continued earnings growth should drive continued equity market upside. We expect the S&P 500 will rise by 6% to our revised year-end target of 8000. Our previous target was 7600. The increased return forecast reflects increased estimates for S&P 500 earnings following an exceptionally strong Q1 reporting season. We raise our S&P 500 EPS forecasts to $340 (+24% year/year) in 2026 and $385 (+13%) in 2027. The beneficiaries of AI infrastructure investment will account for roughly half of S&P 500 EPS growth this year." GoldmanA more detailed look at global markets courtesy of NewsquawkAPAC stocks were predominantly higher following the mostly positive lead from Wall Street, where the S&P 500 and Nasdaq printed fresh record highs amid outperformance in tech, while markets remain hopeful of a US-Iran agreement despite the recent limited US 'self-defence' strikes. ASX 200 eked mild gains with strength seen in tech and miners, but with the upside capped by losses in the top-weighted financial sector, while participants also digested softer-than-expected headline inflation. Nikkei 225 rose to a fresh record high above the 66,000 level as tech stocks continued to underpin the index, and with Services PPI data printing softer-than-expected. KOSPI outperformed and posted a new all-time high as SK Hynix rallied to surpass the USD 1tln market cap milestone, while Samsung Electronics was also boosted after union workers voted to accept the pay agreement. Hang Seng and Shanghai Comp lagged following weak earnings results from Xiaomi, which reported a 43% drop in adjusted net in Q1 and with China expanding overseas travel curbs to its top AI talent in private firms, while there were also comments from USTR Greer that China expects a certain level of US tariffs we agreed to and that US tariffs on Chinese goods will likely