Tech stocks lead a monster week

Tech stocks surged this week, driving major indices to record highs. Oracle, AMD, and Microsoft led the gains, with Oracle up 32% week-to-date, its best performance since 1999. The tech-heavy Nasdaq-100 has gained 17.4% since late March. Peace talks between the U.S. and Iran, along with strong AI-related tech performance, fueled the rally. Bitcoin also had a strong week, with crypto-linked stocks like Coinbase up over 20%.

The tech sector's strength lifted the broader market. The S&P 500 and Dow Jones Industrial Average also closed higher, with the Nasdaq leading the way. Tech stocks' outperformance pushed the sector's valuation to new highs, with the QQQ ETF up 1.16% on Friday. The rally was broad-based, with software stocks and crypto-linked equities also performing well.

Key upcoming catalysts include earnings reports and geopolitical developments. Microsoft's earnings report on April 26 will provide insight into the tech giant's performance and cloud growth. Meanwhile, the progress of U.S.-Iran peace talks could impact oil prices and, consequently, tech stocks' performance. Additionally, investors will watch for further record highs in the Nasdaq-100 and bitcoin, as well as any pullbacks in tech stocks' valuation.