Cover Story: AI Drives Markets as Valuations Race Ahead of Earnings

Stock markets around the world surged to record highs in April, defying geopolitical tensions, volatile energy prices and uncertainty over interest rates, as investors crowded into a small group of artificial intelligence (AI) and semiconductor giants.

The rally has been strikingly narrow. Rather than broad-based corporate strength, gains have been powered by a handful of mega-cap companies, masking weaker momentum across the rest of the market.