A shortened holiday week did little to interrupt the upward momentum in US equities, with investor appetite still being shaped by a combination of easing geopolitical concerns, strong technology earnings and continued confidence in the artificial intelligence investment cycle. The S&P 500 extended its positive run, recovering sharply from the lows seen in March, while markets responded favourably to renewed hopes of a ceasefire extension between the US and Iran.
The Nasdaq 100 also reached a notable milestone, moving through the 30,000 level for the first time since its launch in 1985. Large technology and AI-related businesses remain central to market leadership, supported by strong demand for semiconductors, high-bandwidth memory chips and the infrastructure required to support expanding AI adoption.
However, the shape of the rally deserves careful attention. The S&P 500 recorded several consecutive all-time highs despite negative market breadth, meaning more shares fell than rose on those trading days. Headline index strength can mask narrower underlying participation. While the current earnings backdrop has helped justify optimism, concentrated leadership can leave markets more exposed if sentiment towards the dominant winners changes.
Within technology, leadership appears to be shifting from the well-known Magnificent 7 names towards companies supplying the essential infrastructure behind AI. This is an important distinction for investors considering positioning. The AI theme is no longer only about consumer-facing platforms or headline software names. It is increasingly about the “picks and shovels” of the supply chain, including chip manufacturers, server providers and related infrastructure businesses.
Taiwan Semiconductor Manufacturing Company remains a clear example of this dynamic, given its central role in producing chips for major technology customers. Its importance to Taiwan’s economy and electricity consumption underlines both the opportunity and the operational dependencies embedded in the AI build-out.
Dell Technologies provided another illustration of demand shifting into AI infrastructure. The company reported record results, with revenue close to 44 billion dollars, profits tripling and demand for AI-optimised servers rising sharply. A large order backlog suggests that corporate investment in AI capacity remains active, which may support further investor interest in companies exposed to this part of the market.
Private markets are also reflecting the reach of the AI theme. Anthropic, the creator of Claude Code, is reportedly nearing a one trillion-dollar valuation after rapid growth in recent months. Its tools are designed to help data analysts, software engineers and web developers automate tasks, showing how AI adoption is spreading beyond infrastructure and into everyday productivity workflows.
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