S&P 500 extends win streak to 9 weeks with 1.6% gain

The S&P 500 rose 1.6% for the week to close at 7,594, extending its winning streak to nine consecutive weeks — matching the longest such run since 2023.

"AI capital spending is overwhelming geopolitical anxiety, and the market is pricing a remarkably smooth landing across multiple fronts simultaneously," said Stephen Innes, managing partner at SPI Asset Management.

The Nasdaq Composite added 0.4% to 27,082, while the Dow Jones Industrial Average slipped 0.3% to 50,888. Technology stocks led the advance, with Dell Technologies surging 32.8% after reporting profits that beat analyst estimates and raising its outlook on AI computing demand. The Cboe Volatility Index, or VIX, rose 4% to 15.94, remaining near the low end of its trailing one-year range despite the equity rally.

The nine-week run has lifted the S&P 500 nearly 20% from its March lows triggered by the Iran conflict, as falling oil prices eased inflation concerns and AI enthusiasm expanded investors' willingness to look beyond geopolitical uncertainty. The 10-year Treasury yield rose 3 basis points to 4.48%, while the dollar index edged up 0.3% to 99.15.

The rally has been fueled by a combination of easing Middle East tensions and an AI-driven capital spending cycle that continues to dominate global asset allocation. WTI crude posted its worst month since April 2025 as markets priced a future where the Strait of Hormuz eventually reopens, though physical inventories continue to be drawn down at an extraordinary pace.

Among S&P 500 sectors, technology and communication services led gains for the week, while energy and materials lagged as oil prices retreated. The advance-decline ratio on the New York Stock Exchange favored advancers by roughly a 3-to-2 margin, with new 52-week highs outpacing new lows.

Options Activity Hits Record Levels

The market's advance has become increasingly dependent on options-related flows. May produced the largest single-day SPX call volume session on record, with calls accounting for roughly 70% of all options traded, according to Goldman Sachs. This type of gamma-driven activity creates a self-reinforcing feedback loop that pushes prices higher but can also leave markets vulnerable to abrupt repricing if the momentum stalls.

The S&P 500's nine-week winning streak matches a feat last achieved in 2023, when the index rallied from October through December on expectations of Federal Reserve rate cuts. This time, the catalyst is different: AI-related capital spending is driving earnings expectations across the technology sector, with companies like Dell, Micron Technology and Nvidia delivering results that have supported the broader market's advance.

Investors now face a June calendar packed with potential inflection points, including the next Federal Reserve meeting and ongoing diplomatic efforts to resolve the Iran conflict. The market's ability to extend its run will depend on whether peace negotiations hold and whether AI-driven earnings momentum can sustain valuations at current levels.

This article is for informational purposes only and does not constitute investment advice.