S&P 500 Tops 7,500 as AI Fuels Record-Breaking Run: Markets Wrap
(Bloomberg) — A revival of the artificial-intelligence trade kept fueling momentum in stocks, with the market also rising after retail sales showed signs of consumer strength despite a war-driven surge in energy costs.
The rally in equities from this year’s lows drove the S&P 500 above 7,500 for the first time. Nvidia Corp.’s seven-day gain put its value close to $6 trillion. A solid outlook from Cisco Systems Inc. lifted its shares by 13%. The AI-hype extended Ford Motor Co.’s jump. Cerebras Systems Inc. soared 68% in its debut. In late hours, Applied Materials Inc. gave strong forecasts.
Renewed AI wagers, solid corporate profits and economic resilience have sent American stocks from one record to the next. A report showed retail sales advanced for a third month. Nine out of 13 categories posted increases.
“April retail sales echoed what we’ve heard across corporate conference calls for weeks now: The US consumer remains resilient despite soaring gas prices,” said Bret Kenwell at eToro. “When it comes to stocks though, tech is in the driver’s seat right now, not the consumer.”
When there’s uncertainty, the best defense remains a strong offense of fundamentally superior stocks, according to veteran strategist Louis Navellier. Since the order backlogs are growing for data center and AI-related shares, the earnings in the upcoming quarter are forecast to be even stronger, he said.
Bets that corporate earnings will keep powering ahead have offset worries that higher energy costs could fuel inflation and weigh on consumer confidence. First-quarter S&P 500 profits likely grew about 27% from a year ago, marking a sixth straight quarter of double-digit expansion, according to data compiled by Bloomberg Intelligence.
It’s clear that Corporate America has become very skilled at adapting to a wide range of economic environments, according to Clark Bellin at Bellwether Wealth. For investors who missed the opportunity to put new money to work during the war-driven slide in March, he says: “It’s not too late.”
“Stocks are still climbing the wall of worry, and we don’t think there is euphoria in markets just yet,” Bellin noted. “In fact, there is still plenty of skepticism, which suggests this bull market has more room to run.”
Also helping sentiment was the relative stability in oil prices. US President Donald Trump signaled China is willing to support negotiations with Iran, as he pushes for a diplomatic resolution to end the war and reopen the Strait of Hormuz.
Elsewhere, the pound fell as Andy Burnham secured a path to challenge Keir Starmer for the UK prime minister’s job, after a Member of Parliament quit to give the Greater Manchester mayor a run at his seat in the House of Commons. Bitcoin topped $80,000 after the Senate Banking Committee advanced a landmark US digital asset market structure bill.
Corporate Highlights:
Apple Inc.’s two-year-old partnership with OpenAI has become strained, according to people familiar with the matter, with the AI startup failing to see the expected benefits from the deal and now preparing possible legal action. China agreed to buy 200 Boeing Co. planes, President Donald Trump said in an interview with Fox News Channel’s “Hannity.” But the order fell short of the 500 737 Max and widebody aircraft Chinese airlines were expected to buy at the upper extreme of a landmark deal. Shares of freight brokerages sank after a Supreme Court ruling that may open the companies up to new lawsuits. Activist investor Elliott Investment Management has taken a stake in medical device firm Dexcom Inc. in a deal that will put two independent directors on the board, according to a statement from the company. Nvidia Corp.’s major server assembly partner Hon Hai Precision Industry Co. reported a stronger-than-expected increase in quarterly profit, highlighting sustained spending on hardware essential for AI. What Bloomberg Strategists say…
“Returns in the US equity benchmark are driven by a near record-low number of stocks, putting too much weight on too few AI-driven pillars.”
—Tatiana Darie, Macro Strategist, Markets Live. For the full analysis, click here.
Some of the main moves in markets:
Stocks
The S&P 500 rose 0.8% as of 4 p.m. New York time The Nasdaq 100 rose 0.7% The Dow Jones Industrial Average rose 0.7% The MSCI World Index rose 0.6% Currencies
The Bloomberg Dollar Spot Index rose 0.3% The euro fell 0.4% to $1.1669 The British pound fell 0.9% to $1.3397 The Japanese yen fell 0.3% to 158.37 per dollar Cryptocurrencies
Bitcoin rose 2.4% to $81,581.82 Ether rose 1.6% to $2,299.24 Bonds
The yield on 10-year Treasuries was little changed at 4.48% Germany’s 10-year yield declined six basis points to 3.04% Britain’s 10-year yield declined seven basis points to 4.99% Commodities
West Texas Intermediate crude rose 0.9% to $101.88 a barrel Spot gold fell 0.8% to $4,650.39 an ounce ©2026 Bloomberg L.P.
