US stocks rise: optimism about AI has overshadowed military risks

The main U.S. stock indices opened with growth after a long weekend (the day before, Ma 25, the U.S. stock exchanges did not work due to Memorial Day). Despite the fact that a few hours ago it became known about new U.S. shelling of Iranian territory, optimism about AI was able to overshadow military risks, writes Reuters.

Against this background, the broad index of American stocks S&P 500 rose by 0.5% in the first minutes of trading, reaching a new record level of 7527.75 points. Technological Nasdaq Composite jumped by more than 1%, Dow Jones blue chips index rose by 0.3%, Russell 2000 index of small and medium capitalization companies added 0.9%.

Meanwhile, Brent crude oil is also rising by 3.39% against the previous close - trading at $99.35 per barrel. WTI in turn costs $93.

"The consensus forecast [of analysts] still assumes that some kind of détente will formally be reached between Washington and Tehran in the next few days. That means the big question now is to what extent this scenario is already embedded in market prices," noted Adam Crisafulli of Vital Knowledge. His opinion is quoted by CNBC.

"There is no doubt that fundamentals are at least partially responsible for the market rally," says Adam Parker, founder of Trivariate Research. "With [U.S. stock market companies'] earnings forecast to grow 23% this year and 16% next year, there is a strong case to be made that despite earnings forecast upgrades and strong earnings growth, the forward P/E multiple (price-to-earnings forecast ratio) is showing a modest decline," he added.

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