Falling energy costs and a rebound in AI-related stocks drove major equity benchmarks to all-time highs last week.
The S&P 500 climbed 3.58% last week, reaching a record high as declining oil prices and softer Fed rate-cut expectations fueled risk appetite. The NASDAQ rose 5.19%, marking its strongest weekly performance since April, while European indices like the DAX and CAC 40 also set new highs.
The rally was bolstered by a resurgence in AI-related stocks, with the Philadelphia Semiconductor Index jumping 9.24% after a weak July. US high-yield credit spreads tightened the most since April, reflecting broad market optimism.
Asian markets showed mixed performance, with the Nikkei up 1.80% while the CSI 300 fell 0.52%. Brent crude rose 0.8% early Monday, but US and European equity futures remained flat.