The S&P 500 closed higher amid optimism about artificial intelligence.
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NEW YORK, May 11 (Reuters) - The Standard & Poor's 500 index edged higher at the close on Monday, buoyed by increased optimism about artificial intelligence even as enthusiasm waned with the end of the earnings season, rising crude oil prices, and growing inflation concerns as U.S.-Iran peace talks faltered.
Semiconductor stocks easily outperformed other sectors as the momentum associated with artificial intelligence continued, and chipmakers outperformed the market as a whole.
"Trading in semiconductor and AI infrastructure stocks has become a completely standalone thing," said Ross Mayfield, investment strategist at Bird in Louisville, Kentucky. "There's so much drive and determination to invest in some of these stocks that it seems somewhat detached from any kind of advertising."
As of Friday, analysts estimated that S&P 500 earnings would grow 28.6 percent year-over-year in the first quarter. This is more than double the 14.4 percent growth estimate for the quarter ending April 1.
Preliminary data indicates that the S&P 500 index rose 14.62 points, or 0.20 percent, to 7413.55 points, the Nasdaq Composite index climbed 25.88 points, or 0.10 percent, to 26272.96 points, and the Dow Jones Industrial Average increased 100.46 points, or 0.20 percent, to 49709.62 points.