Finance

Intel shares surged over 23% following a stellar Q1 earnings report and optimistic forward guidance, lifting its market capitalization to $335 billion. This performance fueled an 18-day winning streak for semiconductor stocks, with the PHLX Semiconductor Index hitting record territory as peers like AMD also posted double-digit gains.

Investors are closely monitoring potential diplomatic breakthroughs as Iranian and U.S. officials head to Pakistan for renewed talks regarding the conflict in Iran. These optimistic signs contributed to a decrease in the VIX volatility index and a slight cooling of crude oil prices, which hovered around $95 per barrel.

Despite the stock market rally, the University of Michigan's consumer sentiment index dropped in April due to persistent worries over the Iran war and rising fuel costs. Year-ahead inflation expectations climbed to 4.7%, reflecting public anxiety that higher energy prices and existing tariffs may sustain elevated price pressures.

The cryptocurrency market remained stable with Bitcoin trading near $78,300 as it continues a technical pattern of higher highs and higher lows. Sentiment is bolstered by a transition toward institutional-grade stability, with surveys indicating that 80% of institutional investors intend to increase their digital asset allocations.

The 10-year Treasury yield ticked slightly lower to 4.31% but remains under pressure as investors brace for the Federal Reserve to maintain steady interest rates. Market participants expect both the Fed and the ECB to keep policy on hold this week, focusing instead on how energy shocks might influence long-term inflation targets.