3 themes that drove stocks to another week of records Stocks reached record highs last week, driven by optimism surrounding potential U.S.-Iran peace progress, robust corporate earnings, and a surge in technology and AI stocks. The S&P 500 and Nasdaq Composite saw significant gains, extending their winning streaks. Key themes influencing the market included tentative signs of de-escalation in the Middle East, strong performance from AI-related companies like Snowflake and Dell, and a volatile but ultimately positive week for cybersecurity stocks following varied earnings reports.

• Stock market indices, including the S&P 500 and Nasdaq Composite, reached record highs last week.
• Investor optimism was fueled by potential progress in the U.S.-Iran war, positive corporate earnings, and strength in tech stocks, particularly those involved in AI.
• Snowflake’s AI compute deal with Amazon and Dell’s strong revenue growth driven by AI demand boosted tech stocks.
• Cybersecurity stocks experienced volatility, with Zscaler’s disappointing guidance impacting peers, but Okta’s strong performance driven by AI demand led to a sector-wide rally.
• The S&P 500 completed its ninth consecutive week of gains, while the Nasdaq had won eight of the last nine weeks.