Wall Street investors largely shrugged off escalating tensions with Iran this week, instead focusing on a surge of enthusiasm for memory and semiconductor stocks. The S&P 500 closed near a record Thursday as oil prices eased and President Trump signaled a de-escalation of the conflict. This 'peace trade' saw the Nasdaq Composite gain 1.3% and the Dow industrials climb 0.3%.

Leading the market's advance were familiar technology names, particularly in the AI sector. Micron Technology shares jumped 4.5% following its announcement of a $250 billion investment in U.S. semiconductor manufacturing, citing surging demand for AI-driven memory. Other chipmakers like ON Semiconductor, Marvell Technology, and Advanced Micro Devices also posted significant gains.

The positive sentiment was further bolstered by anticipation of the U.S. listing for Korean chip giant SK Hynix. This continued focus on AI hardware suggests that investor appetite for these growth sectors remains strong, even amidst geopolitical uncertainty. The market's quick pivot from concerns over oil supply disruptions and inflation to a focus on technology demand highlights a persistent belief in the long-term growth trajectory of AI.