US stocks surged to new record heights thanks to a strong AI-driven rally, with Nvidia surpassing Microsoft to become the most valuable public company. The S&P 500 and Nasdaq Composite both saw record closes while the Dow Jones edged higher. Nvidia's stock price skyrocketed, giving it a market cap just above Microsoft. Wall Street banks are adjusting their year-end targets upwards due to the AI revolution. However, disappointing retail sales numbers raised concerns about consumer strain amidst high interest rates and stubborn inflation. A mix of optimism and caution was heard from Fed officials regarding interest rates, with potential policy easing later this year but only one rate cut expected in 2024. Despite this guidance, investors are still banking on two cuts by year's end. Markets will be closed for Juneteenth, providing a pause in the action.