Financial Exchange flags AI-driven highs

U.S. stocks hit record highs in April as investors rushed back into artificial-intelligence trades even with the Iran war and a Federal Reserve meeting hanging over markets. (cnbc.com) (federalreserve.gov) The S&P 500 closed at an all-time high on April 16, its second straight record close, after rebounding about 11% from its March 30 low, CNBC reported. J.P. Morgan said the index recovered from a nearly 10% drawdown in just 11 trading sessions. (cnbc.com) (jpmorgan.com) The rally has been led by semiconductors, where the Philadelphia SE Semiconductor Index rose 3.2% to a record on April 24 and extended its 2026 gain to more than 47%, according to Reuters. Intel jumped 22.6% that day after issuing a stronger-than-expected revenue forecast, while Advanced Micro Devices rose 13.7% and Arm climbed 12%. (reuters.com) (money.usnews.com) That matters because the market’s leadership is no longer just Nvidia. Reuters said Intel’s outlook revived confidence that spending on the chips behind artificial-intelligence systems is still accelerating across the sector. (money.usnews.com) The rebound has also spread beyond the biggest technology names. J.P. Morgan said the Russell 2000 was up 11% month to date as of April 24, while the Nasdaq 100 logged a 13-day winning streak, its longest in more than a decade. (jpmorgan.com) The macro backdrop is less clean than the price action suggests. CNBC reported that investors were looking past an oil blockade through the Strait of Hormuz and betting the conflict around Iran would be resolved faster than the worst-case economic forecasts implied. (cnbc.com) Another pressure point is private credit, the fast-growing market for loans made outside traditional banks. Reuters reported on April 14 that large banks were stress-testing or closely monitoring those exposures after three of the six biggest U.S. lenders disclosed about $108 billion of financing exposure tied to private credit or related loans. (money.usnews.com) Reuters also said the default rate among U.S. corporate private-credit borrowers rose to a record 9.2% in 2025, citing Fitch Ratings. Citigroup finance chief Gonzalo Luchetti said the bank was "constantly stress-testing" private-credit portfolios, and JPMorgan finance chief Jeremy Barnum said the firm was watching the space "very closely." (money.usnews.com) The next scheduled Federal Open Market Committee meeting is April 28-29, with the policy statement due at 2 p.m. Eastern on Wednesday, April 29, under the Fed’s published calendar. Reuters reported Wednesday that officials were expected to hold rates steady. (federalreserve.gov) (reuters.com) That leaves traders balancing two stories at once: an artificial-intelligence rally still setting records, and a market still carrying war, credit and policy risks into the Fed decision. (cnbc.com) (money.usnews.com)