S&P 500 and Nasdaq Close Higher on AI and Inflation Tailwinds

The S&P 500 advanced 0.26% to 7,748.50 while the Nasdaq Composite rose 0.54% to 26,588.49, marking a constructive session for equities despite mixed signals from energy markets.

Oil prices remained elevated near multi-month highs due to unresolved US-Iran tensions, yet the positive corporate and macro developments dominated price action. Asian markets followed suit higher on Thursday, reflecting global risk-on sentiment.

The session highlighted continued leadership from AI infrastructure and related technology names, suggesting that investor focus remains on secular growth themes. Sector breadth improved with gains across most major groups, though defensive areas lagged.

For traders, key levels to watch include the recent highs in the Nasdaq and any breakdown below support in the S&P 500 if macro data disappoints. Earnings season momentum, particularly in high-growth areas, appears intact and could support further upside.

Geopolitical risks remain a wildcard that could pressure energy and broader markets if tensions escalate. Positioning should favor names with strong fundamental catalysts while maintaining hedges against oil volatility.

The overall tone suggests equities can grind higher in the near term provided inflation stays benign and AI spending narratives hold.