Investor Confidence Surges Just as CEO Confidence Sags

Oil prices spike, but are no match for all the AI enthusiasm

Key Takeaways

• Markets Are Higher Despite Geopolitical Risks: The roaring AI trade has swamped the heightened confusion over these “deal” talks between the U.S. and Iran (as President Trump toughened his terms, particularly over the nuclear program) and the IDF making deeper incursions into Lebanon. The S&P 500 is now up nine weeks in a row, a streak we last witnessed in late 2023 —having posted no fewer than 11 record closing highs in May. The +16% run-up in the S&P 500 over the April-May period is a two-month surge that has happened just four other times since 1950!