S&P 500 and Nasdaq gain as chipmakers rally, though oil spike and geopolitical tensions temper broader market sentiment

As of midday, the S&P 500 rose 0.34% to 7,424.04 and the Nasdaq Composite added 0.38% to 26,346.51, while the Dow Jones Industrial Average fell 0.01% to 49,604.50. Chip leaders including Nvidia and Intel extended gains; Qualcomm surged on an analyst upgrade, and Micron Technology continued to rise.

Oil prices jumped almost 3%, with WTI crude trading at $98 a barrel at midday. Analysts at Morgan Stanley and other top investment banks emphasized the importance of reopening the Strait of Hormuz before June amid global oil supply disruption concerns and stalled U.S.-Iran negotiations.

Some commentators view the strong rally in AI and chipmaker stocks as a sign of resilience, while others warn it as a red flag. Analysts caution that growth driven by ultra-concentrated equity leadership could make major indexes vulnerable if AI spending slows, and emphasize that diversification and long-term focus remain key.