AI Leads the Rally as Stocks Hit New Highs and Key Risks Remain

The market moved sharply higher, with the SPDR S&P 500 ETF Trust (SPY) reaching another all-time high as oil prices and the 10-year Treasury yield moved lower.

SPY has now pushed above its previous pivots and into the next rising resistance line. That line has already been tested more than three times, giving the next attempt roughly a 50% chance of breaking through. The level to watch is $772.70. Price is now in discovery mode, and despite the speed of this move, it is not overbought in the near term.

The Invesco QQQ Trust (QQQ) is still trading inside its recent consolidation and has not reached a new all-time high. Technology took heavier losses during the past month or two, so this recovery may need more time. The next resistance level is $731.77. A move above that level, followed by another strong session, would bring QQQ closer to all-time high territory and could turn that former resistance into support. Reaching the upper weekly channel near $803 by September 8 would require a much faster advance.

Semiconductors are leading the recovery, but the VanEck Semiconductor ETF (SMH) still faces major resistance. The former head and shoulders neckline sits at $582.20, followed by a declining trend line just below $600. The 50-day simple moving average is at $595.94, and it is likely to converge with that trend line. That creates a strong resistance zone where selling pressure could return.

The 10 year Treasury yield dropped to 4.611%, moving away from 4.687%. The next support level is 4.54%. That decline helped stocks because lower long-term yields reduce pressure on valuations. The previous three sessions looked like a possible bullish consolidation, but the pattern did not have enough time to mature, and yields reversed lower instead.

Gold gained about 0.5% and has now spent two sessions above its declining resistance line. A close above $4,083.14 would provide stronger confirmation and could turn the former resistance near $4,023 into support.

Silver performed better, rising 2.23%. Another push higher would strengthen its breakout and place the next level at $63.26. The larger structure still shows possible future accumulation areas near $53, $35, and potentially $30. The previous major high from April 2011 remains at $49.83.

West Texas Intermediate crude oil fell 5.66%. The first support level is $72.70, followed by stronger support near $70.30. The lower trend line sits at $68.47. Natural gas also moved lower and closed below $2.75 for one session. A second close below $2.75 would increase the risk of more downside, while a recovery above it would reopen the bullish setup.

Artificial intelligence monetization is now the main story. Microsoft Corporation (MSFT) showed that artificial intelligence spending can produce meaningful revenue, and Palantir Technologies Inc. (PLTR) reinforced that message with a gain of more than 30%.

Palantir broke through its declining channel and accelerated above $150.62. It did not close above the previous major pivot high, so that remains the next test. If price can close above the current earnings candle, a later pullback toward the former channel resistance just below $150 could become a momentum entry area. The next major resistance is near $200.

Snowflake Inc. (SNOW) also broke above an important trend line. The bullish case depends on the price holding above that breakout area. Continued consolidation above the line could support another move toward $341, followed by the all time high area slightly above $400.

C3.ai Inc. (AI) is attempting a similar breakout but carries more risk because it is a smaller company. Price closed above declining resistance, and a close above the current high would turn $9.92 into support. The next major hurdle is $12.42.

Advanced Micro Devices Inc. (AMD) moved lower after earnings. AMD had already gained about 65% from its May 5, 2026, earnings report to the following high and remained up about 46% heading into the latest close. If selling continues, the price may react near $461 or the psychological $450 level, but the stronger trend line support is near $440.

Arista Networks Inc. (ANET) closed at $192, moved to $202.92 after earnings, briefly reached $225, and then pulled back. A stronger reaction would have held between $215 and $225. The pullback does not erase the positive move, but it shows that buyers were unwilling to maintain the highest valuation.

Space Exploration Technologies Corp., SpaceX (SPCX), closed at $125.33 and briefly moved to $131 before giving back the gain. The clearest immediate support is $100. A deeper decline toward $75 remains possible if selling continues.

Bitcoin (BTC) remains caught between a developing bullish reversal and a bearish weekly structure. The inverse head and shoulders pattern is incomplete and needs to reach $66,785 before it can trigger. A successful breakout could send Bitcoin into the lower $70,000 range. Until that happens, the weekly bear flag keeps the downside risk active.

The market has moved quickly from breakdown risk to new highs, but the key levels still matter. Let price confirm the breakout, hold above support, and prove that buyers remain in control before chasing the move.