What’s News in Markets: New Record Highs, Luxury Woes, and AI Makeovers

Major U.S. indexes hit record highs as investors focused on the resilience of the global economy despite geopolitical tensions in the Middle East, with tech and banking sectors driving gains. Luxury stocks declined on concerns over reduced consumer spending in the region, while digital brokerages surged after the SEC moved to eliminate the pattern day trading rule. Allbirds rebranded as New Bird AI and pivoted to AI chip rentals, sending its shares up over 300%, part of a trend of struggling companies attempting tech makeovers.

Get a concise, data-rich snapshot of how geopolitics, regulatory shifts, and market sentiment are reshaping sector performance across tech, finance, and luxury.

1. 01The Nasdaq posted its longest winning streak in 30 years, rising 6.8% for the week, as strong bank earnings and sustained demand for AI chips supported market confidence.
2. 02Luxury stocks like Kering and Hermes fell due to disrupted travel and store closures in the Middle East, highlighting their exposure to regional geopolitical shocks.
3. 03The SEC's proposed end to the pattern day trading rule boosted brokerage stocks, with Robinhood and Webull rising 31% and 36% respectively, signaling increased retail trading activity ahead.