U.S. stocks rose as investors largely shrugged off the latest U.S.-Iran clashes
and rotated into technology names. Despite heightened Middle East tensions and
an earlier sell-off in chip stocks, the AI investment theme remains intact.
Goldman Sachs' trading desk said client conversations show no material concern
about AI-related trading or capex prospects, viewing the recent pullback as
technical rather than fundamental. BlackRock economist Helen Zhuweil added that
although the biggest tech firms are beginning to post negative free cash flow
and are increasingly financing expansion via debt, AI investment commitments
should continue to support the theme for at least another two to three years.
