S&P 500 and Nasdaq Hit Record Highs Fueled by AI and Semiconductor Rally

After weeks of anticipation, major Wall Street indices closed at fresh record highs driven by momentum in the technology sector. The S&P 500 finished at a historic 7,519.47 points, rising 0.62%, while the Nasdaq Composite jumped 1.18% to reach 26,655.89. According to reports, enthusiasm for semiconductor and AI stocks successfully offset ongoing geopolitical concerns involving Iran, even as the Dow Jones Industrial Average lagged behind.

This rally comes as major chipmakers like Nvidia and AMD experience unprecedented demand for AI infrastructure, pushing the tech sector to outperform the broader market. Compared to the previous quarter, semiconductor profit margins have continued to improve despite global inflationary pressures. Per market data, this performance divergence between the Nasdaq and the Dow reflects investor preference for tech growth as a hedge against geopolitical volatility in the Middle East.

At the close on May 26, 2026, traders are monitoring the sustainability of these record levels ahead of the FOMC Minutes scheduled for release on May 20 (per the economic calendar), which may provide clues on the interest rate path. Markets are also awaiting inflation data from the UK and the Eurozone to gauge global risk appetite, with the 7,500 level on the S&P 500 acting as a key technical support following the recent breakout.