S&P 500 Hits Amid Iran Hormuz Blockade, AI Chip Rally
SkimNews Take
Geopolitical instability and presidential rhetoric are increasingly decoupled from market performance, as sector-specific technological advancements become the dominant driver of S&P 500 movements.
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- Iran shut the Strait of Hormuz, halting Indian ships and prompting a U.S. Navy order to “shoot and kill any boat” laying mines, which spiked oil prices.
- S&P 500 closed Friday at a record high, up 0.8% on the day and 0.6% for the week, staying above the 7,100 level.
- Donald Trump announced a two‑week cease‑fire extension on Wednesday, then ordered the Navy to target mines on Thursday, driving market volatility.
- Intel posted a blowout earnings report, fueling an 18‑session rally in chip stocks and lifting Nvidia 3.2% and Broadcom nearly 4% for the week.
- IBM missed expectations and ServiceNow fell short on margins, dragging software stocks down after earnings.
Why it matters: Tech hardware investors captured roughly 4% weekly gains as Nvidia, Broadcom and Arm surged, expanding AI capacity; software investors lost ground as IBM and ServiceNow missed guidance, narrowing AI adoption pipelines.
