Analysis-Investors return to US stocks as AI, earnings growth feed fear of missing out

U.S. stocks are rebounding and investors, reassured by diplomacy around the Iran war, are coming off the sidelines as AI-related spending and a strong start to the earnings season fuel a new fear: missing out on stocks' latest rally. The S&P 500 has risen 11% from its March low and in recent days hit successive ​record closing highs, after falling 8% in the weeks following the February 28 U.S.-Israeli attack on Iran. But a ceasefire between the U.S. and Iran has since helped to soothe nerves, while resilient first-quarter profits and economic data showing the U.S. economy remains on strong footing gave investors additional encouragement to wade back in.