US sharemarkets rose to fresh record highs on Monday, led by gains in technology stocks as Nvidia unveiled a new processor for personal computers and investor optimism around artificial intelligence remained strong.
The S&P 500 gained 0.26% to close at 7,599.96, while the Nasdaq Composite rose 0.42% to 27,086.81. The Dow Jones Industrial Average added 46.42 points, or 0.09%, to finish at 51,078.88. All three indices reached new intraday highs and closed at record levels.
Nvidia was a standout performer, climbing more than 6% after launching a new chip targeting the personal computer market. The announcement also boosted hardware manufacturers, with Dell Technologies rising more than 10% and HP gaining over 8%.
Intel, which has traditionally dominated the PC processor market, fell more than 4%.
The latest gains reinforced the dominant role technology stocks continue to play in driving Wall Street higher. The S&P 500 has now recorded 23 record highs so far this year, following a 16.1% surge across April and May.
Investor sentiment was also influenced by developments in the Iran war. Markets initially responded positively after President Donald Trump said negotiations with Iran were continuing “at a rapid pace”.
However, volatility persisted after Iranian state media reported that Tehran had halted communications with US negotiators and would close the Strait of Hormuz in response to Israeli military operations in Lebanon.
The US and Iran also exchanged strikes over the weekend, with US Central Command reporting that American forces intercepted two Iranian ballistic missiles targeting US forces in Kuwait.
Despite the mixed headlines, investors appeared confident that a broader escalation remained unlikely.
Australian Market Outlook
Australian shares are expected to open lower despite another record session on Wall Street, as rising oil prices and uncertainty surrounding developments in the Middle East weigh on sentiment.
S&P/ASX 200 futures are down 36 points, or 0.4%, to 8,710.
Technology stocks may find support from Nvidia’s strong gains overnight, although broader market sentiment is likely to remain sensitive to developments surrounding the Iran war and the outlook for energy prices.
Locally, the Fair Work Commission will release its annual wages decision at 10.00am AEST.
Economic data due at 11.30am AEST includes the March quarter current account balance, inventories and net exports, along with April building approvals.
