This content was published on
August 14, 2026 - 14:42
4 minutes
(Bloomberg) — US stocks held near a record high on mounting optimism around the artificial intelligence trade and as traders dialed back expectations for Federal Reserve interest-rate hikes. Crude oil trimmed an earlier advance.Contracts on the S&P 500 rose 0.1% after the gauge closed at a record on Thursday. Nasdaq 100 futures advanced 0.3%, with the tech benchmark set for a 1.2% gain in the week. Computer hardware and storage company Sandisk Corp. rallied almost 6% in premarket trading, while investors focused on OpenAI’s plans for a Wall Street debut.Technology shares have lifted the S&P 500 to fresh highs this month as investors piled into beaten-down semiconductor and other AI-related stocks, with second-quarter earnings exceeding already lofty expectations.A drop in US retail sales by the most in more than a year backed the case for caution from the Fed, adding to benign consumer-inflation and producer-price data earlier in the week. Two-year Treasury yields fell four basis points to 4.11%, while a gauge of dollar strength traded down 0.4%.Bank of America Corp. strategists led by Michael Hartnett see the “door wide open for bulls to rip risk higher.” They cited soaring earnings, a $10 trillion wealth surge in 2026 and over $1 trillion of AI capex expected in 2027.BofA’s Hartnett Sees a Republican Senate Win Fueling Stock RallySouth Korea’s Kospi Index — a bellwether for AI investment — added over 2% Friday, bringing its weekly gain to 11% and snapping a seven-week losing streak. Samsung Electronics Co. and SK Hynix Inc. both advanced more than 15% over the past five days.“A huge amount of hyperscaler money is flowing into hardware,” said Hitoshi Asaoka, chief strategist at Asset Management One. “That is translating into extremely strong sales and profit growth for hardware companies. Investors are returning to the idea of, ‘let’s look at the earnings themselves again.’”Oil RisksTo be sure, the threat of elevated energy prices reigniting inflation remains. Brent crude jumped almost 2% on Friday, before reversing the move to trade around $87 a barrel. Treasury Secretary Scott Bessent promised unprecedented “economic isolation” for Iran and a “one-two punch” that includes the continued blockade of the country’s ports.The US sold 30-year bonds at the highest yield in a quarter century on Thursday, underscoring the premium investors are demanding to finance the nation’s deficits.“I don’t think we will get a fully flowing Strait of Hormuz, unfortunately, in the near term,” Patrick Armstrong, chief investment officer at Plurimi Wealth, said in an interview on Bloomberg TV. “The market I do think is complacent on the risks.”What Bloomberg Strategists Say…“Markets remain remarkably resilient and are likely to enjoy a happy end to summer. But beneath that calm, the tails are getting fatter: the risks increasingly point to higher commodity prices, stagflationary risks and higher long-end yields.”Corporate Highlights:Applied Materials Inc. delivered an estimate-beating forecast that still got a lukewarm reaction from investors, a sign of the lofty hopes surrounding a company that’s key to the AI boom. Advanced Micro Devices Inc. raised $4.75 billion in its biggest-ever US dollar bond offering, adding to a wave of debt tied to the AI boom. JD.com Inc. posted its first quarterly revenue decline since listing in 2014, in the latest sign of waning Chinese consumer sentiment. Some of the main moves in markets:StocksS&P 500 futures were little changed as of 8:38 a.m. New York time Nasdaq 100 futures rose 0.2% Futures on the Dow Jones Industrial Average fell 0.1% The Stoxx Europe 600 was little changed The MSCI World Index was little changed CurrenciesThe Bloomberg Dollar Spot Index fell 0.3% The euro rose 0.3% to $1.1568 The British pound rose 0.4% to $1.3539 The Japanese yen rose 0.4% to 158.84 per dollar CryptocurrenciesBitcoin fell 0.9% to $62,780.87 Ether fell 0.5% to $1,875.11 BondsThe yield on 10-year Treasuries was little changed at 4.64% Germany’s 10-year yield advanced three basis points to 3.16% Britain’s 10-year yield advanced two basis points to 4.98% CommoditiesWest Texas Intermediate crude rose 0.3% to $81.47 a barrel Spot gold rose 0.6% to $4,377.97 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Aya Wagatsuma, Momoka Yokoyama, Masaki Kondo and Anand Krishnamoorthy.©2026 Bloomberg L.P.
