US markets experienced a slight increase on Monday, with optimism surrounding artificial intelligence (AI) driving the markets. According to Reuters, all three major US indices closed in positive territory, with the S&P 500 and Nasdaq reaching new all-time highs. The Semiconductor Index rose by 2.6%, indicating sustained enthusiasm for AI technologies.
Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky, stated, "The trading of semiconductors and AI infrastructure has developed a life of its own." He added that the current market movement seems almost independent of news or announcements.
However, some market observers warn that the rally may lose momentum. Investor Michael Burry expressed concerns and predicted that stock prices could soon decline. In a post on his Substack page, Burry stated that the rally in the technology sector could end with a bang in 2026.
The earnings season for the first quarter is nearing its end, with 440 companies in the S&P 500 already having reported their results. Of these, 83% exceeded expectations, according to data from LSEG IBES. Analysts estimate that the aggregate earnings growth of the S&P 500 in the first quarter compared to the previous year is at 28.6%, nearly double the estimates of 14.4% from April 1.
