Published May 18, 2026 Updated about 2 hours ago By Reuters NEW YORK: Two themes critical to the US stock market — the artificial intelligence boom and inflation-pressured consumer spending — will come under the microscope this week with earnings reports from semiconductor giant Nvidia and a host of retailers led by Walmart . Stock indexes have charged higher in recent weeks, with the benchmark S&P 500 and technology-heavy Nasdaq Composite near record levels. Two factors influencing market action in “almost parallel tracks” have been developments with AI and the spike in energy prices caused by the war in Iran, said Allen Bond, portfolio manager at Jensen Investment Management. “There is not a lot of overlap in the two narratives, but one day to the next, the developments … can really drive the market,” Bond said. Stocks pulled back on Friday, as rising crude prices stoked inflation fears that also drove bond yields sharply higher. Still, the S&P 500 has climbed nearly 17 percent since its low for the year in late March, and is now up more than 8 percent in 2026. After the sharp rise, several investors said the market was poised for a breather. Some worried that relatively few stocks have led the recent gains, suggesting the rally may be less robust than it seems. For example, only about one-fifth of S&P 500 components had outperformed the index since the March 30 low as of Thursday morning, according to LSEG data. “There are really a smaller set of names driving the overall index returns again,” said Patrick Ryan, chief investment strategist at Madison Investments. “It’s not necessarily a healthy market when you have that many stocks being left behind.” Nvidia reports results on Wednesday, as an exceptionally strong first quarter for US corporate profit growth winds down. Shares of Nvidia, the world’s largest company by market capitalization, and other semiconductor stocks have propelled indexes higher in recent weeks. Nvidia shares are up 36 percent since the March low, while the Philadelphia…