00:00All right, we're going to move on with Awani International update with S&P 500 and Nasdaq notch record high
00:06closes on Tuesday, May 5, lifted by Intel and other AI-related stocks as a US-Iran ceasefire-held firm
00:14and investors focus on strong quarterly earnings.
00:17Washington said on Tuesday its ceasefire with Iran was intact, allaying worries that attempts by both sides to assert control
00:26over the threat of hummus would escalate hostilities.
00:32Investors focused on AI-related companies, with the Philadelphia Semiconductor Index surging to a record high.
00:39Cheap designer AMD rallied ahead of its quarterly report after the bell, with analysts expecting a 33% surge in
00:46revenue.
00:46A lot going forward depends on two things.
00:50The outcome, the resolution of the war, and then the continuation of the CapEx boom in AI.
00:57I think the war is being under-discounted in terms of its longevity.
01:04I think that the equity markets have become very complacent about the ultimate resolution, meaning a negotiated settlement which involves
01:16the Iranians releasing their enriched uranium as well as meeting our other demands.
01:23I think that is just naive to think that we can come to a resolution so easily.
01:31And so that means that with the Strait of Ormuz shut and the Persian Gulf oil production not able to
01:41access world markets, we are gradually strangling our energy resources so that the big determinant of the war will be
01:53oil prices, or the big outcome of the war will be oil prices.
01:56And so I think the market is overly sanguine on a quick resolution to the war.
02:04S&P 500 companies are on track to post aggregate earnings growth of 28% year-over-year for the
02:10first quarter, the strongest quarterly profit growth since 2021, according to Tajinda Dilon, Head of Earnings Research at LSEG.
02:18Wall Street's AI heavyweights account for much of that optimism.
02:22The S&P 500 gained 58.47 points, or 0.81%, to end at 7,259.22 points, while the
02:32Nasdaq Composite gained 258.32 points, or 1.03%, to 25,326.13.
02:40The Dow Jones Industrial Average rose 356.35 points, or 0.73%, to 49,298.25.
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