US Markets Diverge Amid Geopolitical Tension and Inflation Shock

US equity markets closed with mixed results on Friday, reflecting a tug-of-war between a surging artificial intelligence sector and escalating geopolitical risks. The Nasdaq extended its winning streak to eight consecutive sessions, while the Dow Jones Industrial Average declined by more than 0.5%. Market volatility was driven by high-stakes diplomacy as Vice President JD Vance traveled to Islamabad for critical ceasefire negotiations involving Iran. The fragile truce remains under pressure due to reported violations and ongoing military activity in Lebanon. Tensions were further amplified by President Trump's warning that military action against Iran could occur within 24 hours if negotiations fail. Economic data added to the pressure, with the Labor Department reporting the largest monthly increase in the Consumer Price Index (CPI) in nearly four years. This inflation spike was primarily attributed to a surge in energy prices. Simultaneously, the University of Michigan reported that consumer sentiment has plummeted to a record low, with near-term expectations hitting their lowest level since May 1980. Despite the macro headwinds, the semiconductor sector remained a bright spot. The Philadelphia semiconductor index reached a record high, supported by gains in Nvidia (+2.5%) and Broadcom (+4.5%). TSMC shares rose 1.5% following a first-quarter revenue beat, and cloud infrastructure provider CoreWeave surged nearly 11% after securing a multi-year agreement with Anthropic.