Markets hit new highs on Mideast peace hopes and falling energy prices, but risks loom this summer.

Markets rallied to record highs driven by optimism over a potential peace deal in the Middle East and sharply lower energy prices. However, the surge is partly fueled by debt-financed AI infrastructure investments from major tech firms, which remain unprofitable. Elevated market valuations, weakening economic fundamentals, and seasonal factors suggest a significant market pullback could occur this summer. Gold miners may offer attractive opportunities if rates and oil prices continue to fall, potentially sparking a rebound.