LIVE: S&P 500 makes new all-time high of 7,412 as US stock rally continues

The S&P 500 still finished higher Monday, even with oil prices rising after President Donald Trump turned down Iran’s latest proposal to stop the war. The index gained 0.19% and closed at 7,412.84.

The Nasdaq Composite added 0.1% and ended at 26,274.13. The Dow Jones Industrial Average rose 95.31 points, or 0.19%, to 49,704.47.

Both the S&P 500 and Nasdaq touched new all-time intraday highs during the session, then closed at fresh records. That came after both indexes ended Friday at record levels too.

Last week, the S&P 500 climbed more than 2%, while the Nasdaq rose more than 4%. Both indexes also recorded their sixth straight weekly gain, the first time that has happened for each since 2024. The Dow rose 0.2% for the week, marking its fifth weekly gain in the last six weeks.

Away from the index moves, Michael Burry warned investors not to stay too exposed to the hottest tech names.

Michael, best known for calling the 2008 housing crash, said the market has moved into dangerous territory, with AI excitement and fast-rising momentum trades pushing valuations higher.

In a Sunday Substack post, Michael told investors to “reject greed” and said most people may be better off cutting stock exposure, especially in tech. He wrote, “An easier way for most is to simply reduce exposure to stocks, to tech stocks in particular. For any stocks going parabolic reduce positions almost entirely.”

Michael has been warning for months that the market’s obsession with AI looks too close to the last stage of the dot-com bubble.

Last week, he compared the recent move in the Philadelphia Semiconductor Index (SOX) with the surge that came before tech stocks broke down in March 2000, saying today’s setup feels like “the last months of the 1999-2000 bubble.”

Michael said he still has “a significant leveraged short position” against a group of companies he sees as weak and cheap, similar to the trade he used in 2000. But he also said most investors should not try to fight the rally directly.

“Shorting is not the answer. It is not something most people should ever do,” Michael wrote. “Right now it is expensive, in general, to buy put options and directly shorting stocks can still cause significant pain.”

Shares of Micron rose 6.5% in Monday trading, while the S&P 500 was flat. Most of the market had little momentum outside chipmakers and energy stocks, as the oil spike kept pressure on the broader tape.

Other semiconductor names also moved higher before giving back part of their early gains. Intel (INTC) was up more than 6%, while Qualcomm (QCOM) climbed more than 12% at one point.

Micron has now rallied in 11 of the last 15 trading sessions, according to CNBC. Since the end of March, the stock has more than doubled, making it one of the clearest winners from the latest memory chip rally.

Analysts are now talking more openly about a possible memory chip supercycle that could stretch past the end of next year. Chipmakers are also looking at deals with major customers to add more capacity and ease the supply squeeze.

For tech companies, the shortage is already raising costs. During last month’s earnings calls, executives from the big four hyperscalers flagged higher input costs as a growing issue inside their supply chains.

Profit forecasts across the chip sector are also getting stronger. Micron, SanDisk, and Broadcom (AVGO) are all expected to report gross margins above 75% in 2026, based on FactSet data.

Micron was also listed among the “most hyped stocks on social media” in a May 7 note from JPMorgan analyst Arun Jain and his team.

The rally also spread to South Korea, where most of the world’s memory chip components are made. SK Hynix jumped more than 11% on Monday, while Samsung Electronics rose more than 6%, according to FactSet.

Trump is expected to leave for Beijing this week with about a dozen U.S. business leaders, putting trade, tariffs, and geopolitics back in the center of the market conversation.

The group will reportedly include Tesla CEO Elon Musk, Nvidia CEO Jensen Huang, Apple CEO Tim Cook, Boeing CEO Kelly Ortberg, and Citi CEO Jane Fraser.

The trip comes after another legal setback for Trump’s tariff policy. An international court ruled late on May 7 that his broad 10% tariffs were not valid.

Tariffs have been a major part of Trump’s economic plan, from raising them to using them as pressure in trade talks, but investors did not show much panic after the ruling. Stocks saw little clear reaction by Thursday evening.

Markets also have a heavy inflation week ahead after earnings season dominated the past stretch.

The main event is April’s Consumer Price Index on Tuesday, with economists expecting headline inflation to rise to 3.8% from 3.3% because of the oil shock. Core CPI, which removes food and energy, is expected to move up to 2.7% from 2.6% in March.

More price data will arrive Wednesday through the wholesale inflation report. Retail sales will also give investors a brand new look at whether consumers are still spending while prices stay high and energy costs bite.

Company news will keep coming too, even if the earnings rush has slowed. Investors will hear from names across different parts of the economy, including Oklo (OKLO), Cisco Systems (CSCO), USA Rare Earth (USAR), Applied Materials (AMAT), and others.