Wall Street hits record highs as tech earnings outweigh the geopolitical premium on crude oil.

The financial markets are currently defying the gravity of geopolitical tension. Despite Brent crude prices hovering near the $110 per barrel mark driven by persistent concerns over shipping stability in the Strait of Hormuz major U.S. indices reached fresh record highs this week.

The engine of this growth is not energy, but big tech resilience. Apple’s latest quarterly report, which outpaced analyst expectations in both revenue and profit, has acted as a primary catalyst for investor sentiment. While manufacturing giants like Colgate-Palmolive warn of "volatile macroeconomic conditions" persisting throughout 2026, the market seems to be betting on a "soft landing" managed by robust corporate earnings.

For investors, the narrative has shifted: the risk of high energy costs is being offset by the productivity gains of a digitized economy. However, with the 10-year Treasury yield stabilizing at 4.39%, the margin for error remains thin. The focus for the remainder of May will be whether consumer spending can withstand the persistent inflationary pressure at the pump.