U.S. equities surge on optimism over potential U.S.-Iran diplomatic progress and strong semiconductor sector performance.
The S&P 500 and Nasdaq Composite closed at record highs, driven by renewed hopes for a U.S.-Iran deal and a rally in chip stocks. Advanced Micro Devices (AMD) led the sector, rising 3.2% on strong earnings expectations.
The gains follow a week of mixed economic data, with investors balancing inflation concerns against signs of cooling tensions in the Middle East. The tech-heavy Nasdaq outperformed, up 0.8%, while the S&P 500 added 0.5%.
Semiconductor stocks extended their recent rally, with the Philadelphia Semiconductor Index climbing 1.3%. Market participants cited improving supply chain dynamics and robust demand for AI-related chips as key drivers.