US sharemarkets edged higher on Monday, with the S&P 500 and Nasdaq Composite closing at fresh record highs as gains in major technology stocks outweighed renewed concerns surrounding the Iran war.
The S&P 500 rose 0.19% to finish at 7,412.84, while the Nasdaq Composite added 0.1% to close at 26,274.13. Both indices also reached fresh intraday record highs during the session. The Dow Jones Industrial Average advanced 95.31 points, or 0.19%, to 49,704.47.
Investor sentiment remained focused on developments between the United States and Iran after Tehran reportedly submitted a new proposal aimed at ending the month-long conflict.
Despite rising geopolitical uncertainty, technology stocks continued to underpin broader market gains. Micron Technology climbed 6.5% as momentum in memory-chip stocks continued, while Nvidia rose nearly 2% amid ongoing investor enthusiasm surrounding artificial intelligence spending.
The latest gains extended Wall Street’s recent momentum after the S&P 500 and Nasdaq posted their sixth consecutive weekly advances last week, supported by strong earnings and continued demand for AI-related companies.
Oil prices moved higher after Donald Trump rejected Iran’s latest proposal to end the war, increasing uncertainty around the durability of the ceasefire and the outlook for the Strait of Hormuz.
US West Texas Intermediate crude rose 2.78% to settle at US$98.07 a barrel, while Brent crude climbed 2.88% to US$104.20.
Australian Market Outlook
Australian shares are expected to open modestly higher after further gains on Wall Street overnight, although elevated oil prices and uncertainty surrounding the Iran war are likely to keep sentiment cautious.
S&P/ASX 200 futures are up 13 points, or 0.2%, to 8,746, after earlier gaining more than 20 points during offshore trade.
Energy and materials stocks are likely to remain in focus locally following the rise in crude prices, while technology shares may continue to benefit from strong momentum across US semiconductor and AI-linked companies.
On the economic front, investors will monitor the Westpac-Melbourne Institute consumer confidence survey for May, alongside NAB’s April business confidence and business conditions reports.
Attention will also remain on federal budget developments after Treasurer Jim Chalmers said the government’s upcoming budget would be its “most ambitious yet”, although he stopped short of providing a clear timeframe for improvements in household living standards.
