US Stock Market Today: Wall Street Holds Near Record Highs as AI Optimism Offsets US-Iran War Doubts

Wall Street traded near record highs on Monday as gains in artificial intelligence stocks helped offset fresh doubts over a possible US-Iran peace deal. NVIDIA and Microsoft led the technology advance after NVIDIA unveiled a new chip designed to bring AI tools into laptops and desktop computers.

However, wider market gains remained limited as oil prices rose and investors watched fresh tension in the Middle East. Traders also looked ahead to the May jobs report and Broadcom earnings, with both expected to guide market views on rates and AI demand this week.

AI Stocks Keep Wall Street Near Records

NVIDIA rose 4% after announcing a new chip aimed at personal computers. The product comes from a three-year partnership with Microsoft, which NVIDIA CEO Jensen Huang said was designed to ‘reinvent the PC’ for the AI era. Microsoft shares also gained 2.5%.

The move helped lift the S&P 500 technology index by 1.5%. Micron also advanced 5.7% to $1,022, crossing the $1,000 mark for the first time. Its shares had already climbed nearly 90% in May, supported by strong demand for memory chips tied to AI systems.

Brian Jacobsen, chief economic strategist at Annex Wealth Management, said NVIDIA’s move could support demand, but he also noted pressure on rivals. “NVIDIA might expand the market, but most of its gains will come at the expense of the incumbents,” he said.

War Doubts Limit Broader Gains

Meanwhile, concerns over the US-Iran war kept investors cautious. Oil prices climbed after reports said Iran’s negotiating team was stopping talks with the US over attacks on Lebanon. That raised doubt over whether a deal to end the three-month conflict could be reached soon.

At 09:40 a.m. in New York, the Dow Jones Industrial Average fell 177 points, or 0.35%, to 50,855.46. The S&P 500 was nearly flat, rising 1.82 points to 7,581.88. The NASDAQ Composite gained 39.52 points, or 0.15%, to 27,012.14.

Nine of the 11 main S&P 500 sectors traded lower. Consumer discretionary led the decline with a 2% fall. The split showed that AI strength was still supporting major indexes, while many other parts of the market faced pressure from geopolitical risk.

Doubtful Quotes Shape Market Tone

Several market comments showed doubt around the peace talks. Dan Coatsworth, head of markets at AJ Bell, said, “It’s Groundhog Day for the markets as the Iran-US ceasefire is tested, while conflicting noises are made about the prospects for a peace deal.”

Jefferies strategist Mohit Kumar also pointed to uncertainty. He said a deal between the two sides ‘looks close,’ but the final agreement ‘remains elusive.’ The comment matched the mixed tone in markets, where investors were still hopeful but not fully confident.

Chris Beauchamp, chief market analyst at IG, said technology stocks were continuing to ‘live in a parallel universe to the global economy.’ He added that energy risks remained in the background as the Strait of Hormuz stayed under pressure.

Jobs Report and Broadcom Earnings Come Next

Additionally, investors are watching Friday’s May jobs report for signs on the US economy and the Federal Reserve’s next move. Inflation concerns have grown as the war has pushed energy prices higher and kept pressure on global supply routes.

Traders have priced in a near 70% chance of a quarter-point rate hike before the end of the year. The dollar also opened the week higher, supported by haven demand and the view that AI investment could help US growth.

Broadcom earnings on Wednesday will also draw attention after Dell gave a strong forecast linked to AI servers. Investors are expected to watch Broadcom’s results for more signs of demand from AI infrastructure spending.

For now, Wall Street remains close to record levels as AI-linked stocks support the rally. However, oil prices, war headlines, and incoming US jobs data are keeping traders cautious.

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