Chip Stocks Rally as AI Anxiety Recedes

The resurgence in chip valuations persisted even as Alibaba introduced a new artificial-intelligence model, marking China’s second major demonstration of its AI capabilities within a week. While the tech sector found its footing, energy markets remained volatile. Brent crude futures initially climbed above $90 a barrel following heightened tensions between Washington and Tehran, though prices softened after Iran indicated it was reviewing mediation proposals intended to de-escalate the conflict.

Attention now shifts to the second-quarter earnings calendar. Market participants are bracing for upcoming reports from Alphabet, Tesla, IBM, and Intel, which will provide a clearer picture of corporate health. With the Federal Reserve entering a quiet period ahead of next Wednesday’s interest-rate decision, traders have few economic data points or central bank comments to navigate, leaving stock performance largely dependent on individual company results.