The S&P 500 closed slightly higher on Monday, with AI optimism fueling the upward move, even as inflation worries grew amid a domestic row over the reporting season and crude prices rising, stalling US-Iran peace talks.

Semiconductors have outpaced other sectors handily as artificial intelligence-related momentum continues unabated, with chipmakers outpacing the broader market.

“Semi and the AI ​​infrastructure trade have completely taken on a life of their own,” said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. “And there’s so much momentum and chasing to get in on some of these names that it almost seems divorced from any kind of headline or advertising.”

The first-quarter reporting period is nearing the finish line with 440 companies in the S&P 500. Of these, 83% topped earnings expectations, according to LSEG IBES.

As of Friday, analysts had estimated first-quarter S&P 500 revenue growth, as a whole, of 28.6% on a year-over-year basis. That’s nearly double the first-quarter growth estimate of 14.4% on April 1.

“The strength of the rally is largely a function of earnings growth, which is great,” said Terry Sandven, chief equity strategist at US Bank Wealth Management in Minneapolis.

“Market watchers are looking forward to next week, when big-box retailers report, to understand if there’s a change in consumer spending behavior, you know, elevated prices at the gas pump.”

But as the earnings season nears the finish line, the focus shifts to macroeconomics and geopolitical developments.

President Donald Trump rejected Iran’s response to a U.S. peace proposal, sending crude prices higher and raising concerns that a prolonged conflict would continue to put pressure on inflation, particularly at the gasoline pump, where consumers are feeling the pinch.

To that point, investors will pay close attention to economic indicators this week, particularly the Labor Department’s consumer price index and the Commerce Department’s retail sales report, scanning the data for signs that the ongoing rise in energy prices is weighing on broader inflation or consumer spending.

Also on the economic calendar this week are producer prices and industrial production.

Later this week, President Trump is due to meet his Chinese counterpart Xi Jinping in Beijing, covering a wide range of issues including the Iran war, trade, nuclear weapons, Taiwan, artificial intelligence and the possible expansion of a crucial rare earth mineral deal.

According to preliminary data, the S&P 500 rose 14.62 points, or 0.20%, to close at 7,413.55, while the Nasdaq Composite rose 25.88 points, or 0.10%, to 26,272.96. The Dow Jones Industrial Average rose 100.46 points, or 0.20%, to 49,709.62.

Companies to report this week include tech networking giant Cisco and semiconductor equipment maker Applied Materials, while heavyweights Nvidia and Walmart are due to report later in the month.

On Monday, Intel rose 14% on Friday following a report of an initial chip-making deal with Apple, while peer Qualcomm hit a record high.

Media major Fox Corp grew by beating estimates for third-quarter revenue.

Among other movers, some airline stocks fell as rising oil prices threatened to squeeze margins.