New Highs

Risk-on sentiment pushed US indices to fresh highs despite intense Middle East tensions and energy worries. The S&P 500 and Nasdaq 100 hit new peaks as AI optimism drove tech — Google and Amazon surged on chip and AI-deal news — while oil rallied (US crude > $100/bbl, Brent > $106/bbl), weighing on broader risk appetite. Market breadth is narrow: tech and energy outperform while other sectors lag and futures point to a lower open. Macro data (PMIs, CPI) and rising energy-driven inflation could keep central banks from easing. Company-level risk is highlighted by Tesla’s Q1: revenue +16% YoY, operating costs +37% and a $25bn capex plan, leaving valuation concerns (P/E ~320). Overall the piece reads as constructive for equities/tech in the near term but cautious — upside intact but vulnerable to sharp reversals if the energy shock or macro data deteriorate further.