Wall Street is setting aside Iran concerns for now and returning to the AI growth story.
📈 Wall Street is showing that the market still prefers the growth narrative over an outsized reaction to geopolitical risk. Even with oil above $100 and the S&P 500 pulling back from its peak, capital quickly moved back in as soon as hopes emerged that the conflict could ease.
🤖 The biggest support right now is the belief that the AI investment cycle is far from over. Expectations around large-scale tech IPOs, along with continued demand for data centers, chips, and digital infrastructure, are keeping investors focused on the longer-term story instead of short-term volatility.
📊 Another reason sentiment has not broken down is that economic data and corporate earnings expectations have not clearly deteriorated yet. As long as earnings forecasts are not being cut sharply, the market still has room to defend above-normal valuations.
⚠️ Even so, this setup remains fragile. If oil keeps climbing or disruptions around Hormuz last longer, the inflation-and-slower-growth narrative could quickly overpower the AI story.