Key facts
- US equities advanced for the ninth consecutive week.
- Micron, AMD, and Dell saw significant gains driven by AI enthusiasm and demand.
- Hopes for a US-Iran truce extension and easing oil prices supported the market.
- The Fed's preferred PCE measure showed tentative signs of disinflation.
- Crude oil prices fell approximately 7% amid truce hopes.
- Valuation measures and consumer stress signals are flashing red.
- Costco and Walmart saw sharp pullbacks despite decent quarters.
The US equity market has shown remarkable resilience, extending a significant winning streak. This performance is underpinned by a confluence of factors including strong demand for AI-related technologies, a potential de-escalation in geopolitical tensions with Iran, and early indications of moderating inflation. However, concerns are rising about market valuations and consumer stress signals, suggesting potential headwinds despite current gains.