Gotrade News - Wall Street posted fresh record highs on Monday, May 11, 2026, with artificial intelligence and chip stocks powering the gains. The S&P 500 rose 0.19% to 7,412.84 while the Nasdaq Composite added 0.10% to a new peak of 26,274.13.
The rally was driven by sustained optimism over massive AI capital spending from large technology firms. The PHLX Semiconductor Index jumped 2.6% on the day, marking chips as the session's clear leadership group.
Key Takeaways:
- The S&P 500 closed at 7,412.84 and the Nasdaq set a record at 26,274.13 on May 11, 2026.
- The PHLX Semiconductor Index gained 2.6%, leading sector moves for the day.
- Of 440 S&P 500 companies reporting, 83% beat first-quarter 2026 earnings estimates.
AI and Chip Engines Drive the Rally
According to Kompas, Baird strategist Ross Mayfield said momentum in AI and chip stocks now looks self-sustaining. The advance continued despite mixed daily news flow affecting other risk assets globally.
Chip leaders Nvidia (NVDA) and AMD (AMD) ranked among the session's biggest single-stock contributors. The semiconductor ETF VanEck Semiconductor (SMH) climbed sharply, reflecting broad strength across the chip complex.
As reported by Bloomberg Technoz, BlackRock Investment Institute head Jean Boivin said markets are pricing AI-driven growth. That tailwind is offsetting supply concerns tied to Middle East tensions and softer crude inventories.
Terry Sandven of U.S. Bank Wealth Management added that the rally rests on solid corporate profit growth. Of 440 S&P 500 companies that have reported first-quarter results, 83% have exceeded analyst expectations comfortably.
Inflation Data and Geopolitical Risk
Per Metro TV, Truist chief investment officer Keith Lerner said investors are looking past negative headlines for now. The market assumes a US-Iran deal will eventually be reached despite the current critical condition of talks.
Tuesday's April consumer price index reading will be the next major catalyst for equities. Joseph Brusuelas of RSM US said one-year inflation swaps trade at 3.25% and two-year swaps near 2.93%.
Investor Michael Burry warned that the market has exceeded its limits, signaling potential downside for technology stocks. That caution sits against Robert Edwards of Edwards Asset Management, whose year-end target for the S&P 500 remains 7,700.
The chip rally also boosted other megacap names like Microsoft (MSFT). The cloud hyperscaler is a major buyer of AI accelerators from both Nvidia and AMD for its rapidly expanding data center footprint.
The Dow Jones Industrial Average also climbed 95.31 points, or 0.19%, to 49,704.47 on Monday. Energy was the strongest of the 11 S&P 500 sectors as crude oil prices firmed on Iran ceasefire risk.
S&P 500 annual earnings growth projections have been revised up to 28.6% from 14.4% in April. That sharp upgrade provides a fundamental anchor for the index's record-setting move in recent weeks.
Markets have now logged six straight weeks of gains, the longest streak since mid-October 2024. Roughly $8 trillion in cash remains parked in money market funds, ready to deploy on any pullback.
Marci McGregor of Merrill and Bank of America Private Bank framed any pullback as a buying opportunity. She cited resilient corporate earnings, ongoing AI capital expenditures, and continued labor market strength as anchors.
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