AI and Semiconductor-Powered Global Rally Shows No Signs of Losing Steam

Barry Adams
11 May, 2026
New York City

Wall Street indexes hovered near recent record highs on Monday as investors reassessed the uncertain situation in the Persian Gulf. 

The S&P 500 Index decreased 0.1%, and the tech-heavy Nasdaq Composite declined 0.2% amid a rebound in crude oil prices. 

West Intermediate Texas crude oil price increased 2.5% to $97.78 a barrel, and Brent crude oil price advanced 2.4% to $103.82 a barrel after the U.S. and Iran exchanged proposals, leaving the Strait of Hormuz effectively closed.

Despite the elevated energy and commodity prices, benchmark indexes in New York soared to new record highs in the previous week, and the S&P 500 index and the Nasdaq Composite extended their winning streak to the sixth consecutive week. 

The six-week-long market rebound has been powered by a strong earnings season and resurgent AI- and semiconductor-linked stocks following better-than-expected earnings from Nvidia, AMD, Alphabet, Apple Inc., Amazon, and General Electric. 

On the economic front, the U.S. economy added net new 115,000 jobs in April, following March's revised 185,000 increase. 

The jobs market expanded back-to-back for two months for the first time in a year, driven by gains in healthcare, transportation and warehousing, and retail trade.

The average hourly earnings for all employees rose 3.6%, the jobless rate held at 4.3%, and the participation rate in the labor force changed little at 61.8% in April.

 

Global Semiconductor Rally Supports Historic Highs In Broader Indexes

Benchmark indexes in the U.S., Japan, South Korea, and mainland China traded at new historic highs driven by the sustained gains in AI- and semiconductor-linked stocks.  

Benchmark indexes in mainland China and Hong Kong erased morning gains and closed near the flatline, and investors reviewed the latest updates on inflation and international trade data. 

 

China's Exports and Inflation Data Signal Economic Resiliency

China's annual inflation accelerated in April, fueled by a surge in the price of imported energy products and commodities, and producer price inflation increased for the second month in a row. 

China's overall exports surged 14.3% in April, despite ongoing tensions in the Middle East, and customers rushed with new orders to avoid future price hikes and supply disruptions. 

China's trade surplus narrowed to $84.8 billion in April from $95.9 billion a year ago, and the trade surplus with the U.S. stood at $23.1 billion, driven by an 11.3% rise in exports to $36.8 billion.

China's exports and trade surplus with the U.S. rose despite the Trump administration's tariffs, as businesses continued to source electrical and mechanical intermediate products from the world's second-largest economy.

Moreover, indirect shipments through the ASEAN region, including Vietnam, and Mexico to the U.S. showed no signs of easing. 

 

U.S. Movers 

AMD, Nvidia, Broadcom, Corning, Microchip Technology, and Micron Technology advanced in Monday's trading, extending the previous week's gains. 

Alphabet, Apple, Amazon, Meta Platforms, Microsoft, and Tesla edged slightly lower in choppy trading on Monday.