Markets Ignore Gulf Tensions as AI Rally Powers Record Streaks

Wall Street’s SOX chip index surged more than 5% on Tuesday, helping the S&P 500 secure its ninth consecutive gain. According to Deutsche Bank, another positive finish would mark the index's longest winning streak in over 30 years. This optimism persists even as geopolitical risks mount and the yen tests the sensitive 160-per-dollar threshold, forcing Japanese authorities to defend the currency with $73 billion in recent interventions.

Tech sector momentum remains the primary engine for this confidence. Broadcom is set to report earnings after the market close, with investors closely watching the $2 trillion chip designer. Meanwhile, Microsoft announced a significant milestone in quantum computing, unveiling a new chip redesigned with AI that could make commercial-grade quantum machines viable within three years. On the IPO front, SpaceX is reportedly targeting a record-setting $75 billion raise, with shares priced at $135.

Economic data is adding complexity to the outlook. April job openings unexpectedly surged, challenging the narrative of a cooling labor market and putting pressure on Federal Reserve officials. With ADP private payroll figures and the ISM services PMI pending, the market’s resilience will face a fresh test. Marvell Technology shares also hit a record high following comments from Nvidia CEO Jensen Huang, highlighting the scramble among hyperscalers to secure custom AI hardware.