Record Stock Rally Extends, Oil Drops on Iran: Markets Wrap
(Bloomberg) — Stocks climbed to a record after President Donald Trump signaled progress toward a final agreement with Iran, adding fresh momentum to markets already buoyed by a rally in technology shares. Crude oil declined.
MSCI’s gauge for Asian shares climbed 1.2% to an all-time high with technology shares leading the gains on renewed optimism for the artificial intelligence trade. South Korea, a poster child for AI investments, jumped over 5% to an all-time high, with Samsung Electronics Co. reaching a $1 trillion valuation.
Adding to the sentiment, Brent fell 1.1% to about $108 a barrel on optimism tensions in the Middle East will ease following Trump’s comments. The dollar, which emerged as the haven of choice during the US-Israel war on Iran, weakened.
An index of global stocks also hit a record as cheaper oil bolstered expectations for easing inflation and stronger growth. Futures for Wall Street benchmarks, which closed at a record high on Tuesday, also advanced, signaling the rally in tech shares may have further to run. Strong earnings from Advanced Micro Devices Inc. and Super Micro Computer Inc. added to risk appetite.
With geopolitical risk premiums easing, the prospect of lower energy costs and reduced uncertainty improves the outlook for global growth, reinforcing support for equities even at record levels. The backdrop also dovetails with a revival in the artificial intelligence trade, as easing inflation pressures and improved sentiment bolster expectations for stronger corporate earnings.
“Our base-case for markets and the economy has been that there will be a near-term resolution between the US and Iran, allowing for energy prices to fall after the Strait of Hormuz is reopened,” said Chris Senyek at Wolfe Research.
Trump said he would pause a US-led effort to help stranded ships exit the Strait of Hormuz to see if an agreement with Iran to end the war could be finalized.
“Project Freedom (The Movement of Ships through the Strait of Hormuz) will be paused for a short period of time to see whether or not the Agreement can be finalized and signed,” Trump said in a social media post on Tuesday.
Cheaper oil lifted the debt market with US long bonds rebounding during the New York session, sending the 30-year yield back below 5%. Even so, bond traders are boosting wagers that the Federal Reserve’s next policy move could be an interest-rate hike rather than a cut.
Elsewhere, the yen strengthened 0.2% to about 157.60 per dollar. Gold rose 1.2% to about $4,610 an ounce.
The rebound in global stocks from their Iran war lows has been so narrow that the market is primed for broader gains triggered by even slightly positive news, according to strategists at JPMorgan Chase & Co. led by Mislav Matejka.
“Many investors are trying to read the tea leaves on the next shoe to drop with the Iran war and oil prices, but stocks have historically moved on quickly from geopolitical events, and we believe this current issue is no different,” said Julian Koski at New Age Alpha.
Some of the main moves in markets:
Stocks
S&P 500 futures rose 0.2% as of 9:53 a.m. Tokyo time Hang Seng futures rose 0.2% Australia’s S&P/ASX 200 rose 0.8% Euro Stoxx 50 futures rose 0.5% Currencies
The Bloomberg Dollar Spot Index fell 0.3% The euro rose 0.2% to $1.1719 The Japanese yen rose 0.2% to 157.60 per dollar The offshore yuan rose 0.1% to 6.8207 per dollar The Australian dollar rose 0.5% to $0.7222 Cryptocurrencies
Bitcoin fell 0.8% to $80,976.92 Ether fell 0.8% to $2,363.31 Bonds
Australia’s 10-year yield was little changed at 4.98% Commodities
West Texas Intermediate crude fell 1.3% to $100.96 a barrel Spot gold rose 1.2% to $4,610.78 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Rob Verdonck.
©2026 Bloomberg L.P.
