S&P 500 Hits New Highs on Blockbuster Q1 Earnings, AI Surge: Goldman, Deutsche

The S&P 500 surged to fresh all-time highs on May 11, up 0.25% with gains in four of five recent sessions, propelled by stellar Q1 earnings (17-26% EPS growth, 64-84% beats) and robust AI demand across chips, cloud, and software. The rally began May 4 via Citi's analysis of 1,195 historical highs signaling momentum, strong labor data, $3.2T Gulf inflows, and UBS/BlackRock validation of AI investment boom after April's 10% advance to May 8's 7,398.93 close. Bears like Galloway (12-24 month crash), Hanke's bubble, and $755B hyperscaler capex crowding buybacks offer caution, but Goldman and Deutsche see broadening earnings supporting further upside.