MUMBAI — American equity markets delivered a split verdict as artificial intelligence euphoria propelled the S&P 500 and Nasdaq to record closing levels, while chipmaker Micron surged past the $1 trillion market capitalisation threshold following an upward revision in analyst price targets.
The technology-heavy indices advanced as investors bet on sustained earnings growth from AI-enabled semiconductor companies, overshadowing broader market caution. Micron's entry into the exclusive trillion-dollar club underscores the sector's dominant role in Wall Street's current rally.
However, crude oil prices moved higher as geopolitical tensions escalated following military strikes between the United States and Iran, adding inflationary pressure to global commodity markets. Indian importers, who rely heavily on overseas energy supplies, may face renewed cost pressures if crude sustains gains.
The divergence between technology momentum and geopolitical risk highlights a fragmented investor sentiment. While AI-driven earnings continue to support premium valuations in the chip sector, energy price volatility could weigh on corporate margins across manufacturing and transportation sectors in emerging markets including India.
Analysts suggest the AI theme remains central to near-term market direction, though escalating Middle East tensions pose downside risks to risk appetite globally.