# S&P 500 and Nasdaq Hit Record Highs Amid Iran Conflict

**Published:** 2026-05-29T20:37:23.000Z  
**Topic:** Crypto Lending  
**Sentiment:** bullish  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/2c3839da-d41f-4811-8c6f-69d70e054b08

The S&P 500 and Nasdaq reached record highs as investors prioritized AI-linked stocks despite rising oil prices and uncertainty regarding US-Iran relations.

The S&P 500 and Nasdaq Composite both closed at record highs on May 11, even as geopolitical tensions between the United States and Iran intensified [1]. Despite concerns over the stability of a month-old ceasefire and a surge in energy costs, investors remained focused on the strength of the technology sector [1].

**Key takeaways**
* The S&P 500 rose 0.19% to a record 7,412.84, while the Nasdaq Composite gained 0.1% to reach 26,274.13 [1].
* US West Texas Intermediate crude oil settled up 2.78% at $98.07 per barrel following the rejection of a new Iranian proposal [1].
* Technology companies, particularly those involved in artificial intelligence, continued to drive market momentum [1].
* Copper prices reached a record close of $6.4605, extending gains for 2026 to over 13% [1].

## Market Resilience Amid Geopolitical Uncertainty
The market rally persisted despite a breakdown in diplomatic efforts between the US and Iran. Iran had submitted a new proposal to US negotiators intended to end the war and lift sanctions, but President Donald Trump rejected the offer, labeling it “TOTALLY UNACCEPTABLE!” in a post on Truth Social [1]. Following the rejection, President Trump warned that the existing ceasefire was “on life support” and described the agreement as “unbelievably weak” [1].

In response to the heightened tensions, oil prices experienced a significant jump. Brent crude rose 2.88% to close at $104.20 per barrel [1]. However, market participants appeared largely unfazed by these developments, choosing instead to prioritize the performance of AI-related stocks [1]. Jay Hatfield, founder and CEO of Infrastructure Capital Advisors, noted that the technology boom is currently so powerful that many investors are “tuning out the Middle East” [1].

## AI Sector Drives Investor Optimism
The technology sector remained the primary engine for the market’s record-breaking performance. Chipmaker Micron Technology saw its shares rise 6.5%, while NVIDIA gained nearly 2% [1]. Analysts at Citigroup continue to view the Nasdaq 100 as a preferred vehicle for exposure to the artificial intelligence boom [1]. Strategist Scott Chronert noted that while valuations remain high by historical standards, the optimism surrounding expected earnings growth tied to AI continues to support the market [1].

## Why it matters
The current market environment reflects a tug-of-war between geopolitical instability and the perceived long-term growth potential of the artificial intelligence sector. While energy prices have surged due to fears regarding the Iran conflict, the "unprecedented" technology boom is currently offsetting those concerns [1]. Looking ahead, experts suggest the market could remain relatively flat in the coming months as investors balance the ongoing Middle East conflict against the sustained momentum of AI-linked earnings growth [1].

## Sources
1. The Economic Times — [S&P 500, Nasdaq hit record highs and Dow Jones rises despite soaring oil prices and Trump warning Iran's ceasefire is 'on life support' - here's how US stock market performed ...](https://economictimes.indiatimes.com/news/international/us/sp-500-nasdaq-hit-record-highs-and-dow-jones-rises-despite-soaring-oil-prices-and-trump-warning-irans-ceasefire-is-on-life-support-heres-how-us-stock-market-performed-on-may-11/articleshow/131023710.cms)
2. The Economic Times — [US Stock Market Today | Dow Jones | Nasdaq Highlights: Nasdaq, S&P 500 close at record highs amid AI-driven rally](https://economictimes.indiatimes.com/markets/us-stocks/news/us-stock-market-live-dow-jones-sp-500-nasdaq-trump-us-iran-israel-war-peace-talks-crude-brent-oil-cloudflare-trade-desk-coreweave-expedia-stock-price-news/liveblog/130959823.cms)

---
Cite as: TrendWatcher, "S&P 500 and Nasdaq Hit Record Highs Amid Iran Conflict", https://www.trendwatcher.in/article/2c3839da-d41f-4811-8c6f-69d70e054b08