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AI-driven earnings boost stocks to record highs despite inflation and geopolitical tensions.

Market News
16 May 2026, 06:50 WIB
Seeking Alpha
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Neutral
AI-driven earnings boost stocks to record highs despite inflation and geopolitical tensions.

Strong earnings and optimistic guidance from companies involved in AI infrastructure, semiconductors, and data centers propelled major stock indices to new record highs. Key players like Cisco Systems, Nvidia, Applied Materials, and Broadcom led this momentum. However, rising geopolitical tensions around Iran and the Strait of Hormuz, along with uncertainty after the Trump-Xi summit, caused crude oil prices to spike, reigniting inflation concerns. Strong inflation data pushed Treasury yields higher and reduced expectations for Federal Reserve rate cuts, increasing volatility in growth and interest-rate-sensitive stocks.

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