S&P 500 – records on AI, while everything else gets ignored

The S&P 500 and Nasdaq closed at new record highs to start the week, and markets in Asia did the same. One thing is doing the work: AI stocks. Take out a handful of big tech names and the rally looks far less impressive.

Meanwhile, the Iran war still has no deal, oil is drifting back up, and inflation just hit a three-year high. A month ago traders argued about rate cuts; now a rate hike is back on the table.

This kind of rally can run for a while. The problem is it depends on one story. If the mood on AI turns, there's not much else underneath to hold prices up.

The jobs report this week is the next test. A strong number feeds the rate-hike worry. A weak one raises fears about the economy. For a market sitting this high, both carry more risk down than room up.

S&P 500 key levels:

• Resistance 7,550, then 7,600.
• Support 7,400, then 7,300.

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