The S&P 500 and Nasdaq closed at a record high for the week, marking their longest winning streak since 2024, as they jumped 2.3% and 4.5% respectively. This was fuelled by strong earnings and reduced oil prices and bond yields. However, geopolitical uncertainties around escalating hostilities in the Middle East, particularly the Iran war, continue to worry investors.

Noteworthy performers included Corning, whose shares rose by 18% following an encouraging financial forecast and a supply agreement with Nvidia. Cybersecurity stocks also performed well, with CrowdStrike and Palo Alto Networks increasing by approximately 16% and 15% respectively, backed by firewall provider Fortinet’s optimistic full-year billings guidance.

On the downside, Whirlpool’s shares plummeted 20% after the company revised its earnings guidance downwards and suspended its dividend.

Looking ahead, the upcoming summit between President Donald Trump and China’s Xi Jinping in Beijing is set to influence investor sentiment, as they are likely to discuss the Iran issue among other topics. Monetary policy will also be scrutinized in the context of a potential interest rate decision, as Federal Reserve Chair Jerome Powell’s term ends mid-May.

In a spectacular rally, AI and semiconductor memory chip stocks, especially Micron, witnessed significant gains. The end of the week saw Micron’s shares surge by almost 38%. Similarly, AMD and Intel shares went up 26% and 25% respectively for the week.

AI will feature prominently in talks at the U.S.-China summit, triggering cybersecurity fears and potential military risks. Investors should brace for potential turbulence if a resolution to the Iran conflict doesn’t materialize ahead of the summit, and closure persists at the Strait of Hormuz, critical to global oil transportation.

Several stocks were deemed overbought, following extraordinary gains, including Micron and Qualcomm. Conversely, EPAM Systems and Zoetis were identified as oversold. The firms cited could possibly see their shares decline or bounce back soon.