Micron Technology surged to a $1.2 trillion market cap, outpacing the S&P 500 by 33% in its latest quarter—the strongest performance since 2001. This rally underscores tech’s decoupling from geography, as US equities thrive despite global disruptions like the Strait of Hormuz blockade. Excluded from energy crises, the sector’s demand for semiconductors—and its dominance in software—has fueled investor confidence. Meanwhile, global tech markets, excluding the US, lagged, highlighting America’s strategic advantage in software and AI-driven innovation.

The Hormuz crisis, which has effectively closed shipping lanes for three months, has spiked oil and gasoline prices, creating a "nightmare scenario" for energy-dependent economies. Yet tech’s resilience persists, with the S&P 500 hitting a nine-day winning streak. Analysts note this mirrors post-9/11 patterns, where tech’s immunity to geopolitical shocks drove outsized gains. Investors now bet on semiconductor price hikes amid supply constraints, with Taiwan and South Korea’s chipmakers facing heightened scrutiny as US firms struggle to match global sector performance.

While fears of AI-driven job displacement persist, labor data contradicts panic. The JOLTS report shows US vacancies surging to pre-pandemic highs, with one vacancy per unemployed worker. Historical parallels suggest technological upheavals, like the AI revolution, may reshape jobs over decades rather than erase them. As BCA Research’s Dhaval Joshi notes, creative destruction ultimately spurs adaptation—a lesson from past industrial revolutions. For now, tech’s dominance offers a rare bright spot in turbulent markets.

The US stock market’s outperformance hinges on its tech sector, which accounts for nearly half its value. Excluding tech, the S&P underperforms global peers, yet AI advancements and chip demand sustain its lead. As geopolitical risks mount, investors are betting on technology’s ability to transcend geography—a bet that, for now, is paying dividends.