Stocks Gain as AI Trade Fuels Wall Street Momentum: 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 record-breaking run in equities drove the S&P 500 near 7,500. Nvidia Corp.’s seven-day gain put its value closer to $6 trillion. A solid outlook from Cisco Systems Inc. lifted its shares by 13%. The AI-hype extended a surge in Ford Motor Co. while Cerebras Systems Inc. soared 81% in its debut. Apple Inc. fell as Bloomberg News reported OpenAI has failed to see the expected benefits from a deal and is preparing possible legal action.
Renewed AI wagers, solid corporate profits and signs of economic resilience have sent stocks from one record to the next. A report showed retail sales rose for a third month in April. Control-group sales — which feed into the calculation of goods spending for quarterly gross domestic product — exceeded estimates.
“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.”
Bets that corporate earnings will keep powering ahead have offset concerns that higher energy costs could fuel inflation and weigh on 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 Iran 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, and in fact, there is still plenty of skepticism which suggests this bull market has more room to run,” he said.
Elsewhere, the pound fell after Manchester Mayor Andy Burnham said he’s seeking to run for Parliament, potentially opening an avenue to challenge embattled UK Prime Minister Keir Starmer. Bitcoin topped $80,000 as the Senate Banking Committee advanced a landmark US digital asset market structure bill after months of negotiations.
Crude oil fluctuated, with President Donald Trump signaling China is willing to support negotiations with Tehran as he pushes for a diplomatic resolution to end the war. The US has destroyed most of Iran’s sea mines, the commander of US forces in the Middle East told lawmakers.
“Oil remains the focal point,” Kenwell noted. “That’s not just because of its impact on inflation, but because of what it could mean for consumer spending.”
Corporate Highlights:
China agreed to buy 200 Boeing Co. planes, President Donald Trump said in an interview with Fox News Channel’s “Hannity.” But the accord fell short of the 500 737 Max and widebody aircraft Chinese airlines were expected to buy at the upper extreme of a landmark deal. Delta Air Lines Inc. Chief Executive Officer Ed Bastian said rising jet fuel costs and Spirit Airlines’s collapse are accelerating a divide in the industry between carriers catering to premium travelers and those competing primarily on price. Shares of freight brokerages sank after a Supreme Court ruling that may open the companies up to new lawsuits. Investors are growing increasingly optimistic about Amazon.com Inc.’s position in artificial intelligence, lighting a fire under the stock and sending the company’s market capitalization soaring toward the rarefied $3 trillion level. 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 0.6% as of 2:04 p.m. New York time The Nasdaq 100 rose 0.6% The Dow Jones Industrial Average rose 0.6% The MSCI World Index rose 0.4% Currencies
The Bloomberg Dollar Spot Index rose 0.3% The euro fell 0.3% to $1.1676 The British pound fell 0.9% to $1.3405 The Japanese yen fell 0.2% to 158.19 per dollar Cryptocurrencies
Bitcoin rose 2.3% to $81,491.67 Ether rose 1.8% to $2,303.38 Bonds
The yield on 10-year Treasuries declined one basis point to 4.46% 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 0.8% to $101.82 a barrel Spot gold fell 0.4% to $4,670.88 an ounce ©2026 Bloomberg L.P.
