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S&P 500 Breaks 7,500 as AI Trade Accelerates, Easing Iran Tensions Lift Risk Sentiment

The S&P 500 Index surged past 7,500 as investors returned to technology stocks on renewed confidence in artificial intelligence prospects and receding geopolitical tensions. Cisco Systems reported results that met market expectations, bolstering sentiment around the sector. Traders rotated into AI-related equities including Broadcom as speculation mounted that the worst of Middle East hostilities had passed. The potential resumption of oil flows through the Strait of Hormuz relieved pressure on energy costs, which had spiked during the conflict. Retail sales data showed consumer spending remained resilient despite war-driven volatility. South Korea and Taiwan's chip sectors are poised to expand current-account surpluses to record levels, driven by artificial intelligence demand. This expansion could prompt interest-rate increases from regional central banks later this year.