Stocks rallied to fresh record highs last week, led by a powerful rebound in semiconductor and mega-cap technology stocks. The S&P 500 gained 2.3%, while the Nasdaq surged 4.5% as AI-driven enthusiasm and strong earnings fueled buying across the tech sector.

Chipmakers were the clear leaders, with the semiconductor index jumping more than 11%. NVIDIA, AMD, Intel, Micron, and Sandisk all posted major gains as investor strength returned to companies involved in AI infrastructure and cloud computing. Software stocks also performed well following strong earnings results. This sent Information Technology surging 7% higher on the investor optimism.

Meanwhile, Energy and Utilities saw the biggest pullbacks last week. The renewed U.S.-Iran tensions resulted in swings in oil prices. Crude briefly spiked above $106 per barrel early in the week before retreating sharply as optimism around negotiations improved.

In economic news, Friday saw a stronger-than-expected jobs report which reinforced confidence in the economy. The surprise in the employment report made some analysts question if we might see a future revision to the April readings. Additionally, the surprise strength in employment could further play into the conversation around the recent conflict within the Fed about removing the easing bias from the FOMC statement.