US stock markets have rebounded to previous highs following a V-shaped recovery from the Iran oil shock, with investors facing a dilemma between the strong performance of AI and semiconductor stocks and the negative impact of rising oil prices. Despite last week's positive earnings from major tech companies, concerns linger about inflation and interest rates, particularly in Europe, where oil prices are climbing. The Federal Reserve's recent meetings have not dampened investor enthusiasm, but the ongoing conflict in Iran raises inflation fears, keeping volatility high in European markets. Notably, the upcoming earnings report from Nvidia Corp. on May 20 is expected to be a significant event for both tech stocks and the broader market. Analysts highlight that the concentration of gains in semiconductor stocks could indicate broader market participation, although some investors anticipate a consolidation phase. Meanwhile, European markets remain sensitive to oil supply disruptions, and any resolution regarding the Strait of Hormuz could lead to significant shifts in stock valuations.