Stocks Rally to Record, Oil and Dollar Dip on Iran: Markets Wrap

(Bloomberg) — Global stocks climbed to a record as investors renewed bets on the artificial intelligence trade, driving gains in chipmakers. Oil and the dollar fell on the prospect of an interim US-Iran deal.

MSCI’s All Country World Index rose 0.4%, set for another all-time high close, as its Asia Pacific benchmark climbed 2.2%. Australian shares also hit a new peak. The advances came after the S&P 500 and the Dow Jones Industrial Average both closed at all-time highs Tuesday. Equity-index futures indicated further gains for US and European benchmarks.

Chip stocks remained in focus, with SK Hynix Inc. climbing 6.7% in Seoul. Nvidia Corp. advanced more than 2% in post-market trading after Elon Musk touted the company’s Vera Rubin chips. However, a cautious tone lingered as SpaceX shares fell 7.5% in extended trading after the company projected higher-than-expected spending on its AI business. Advanced Micro Devices Inc. dropped 9% after giving an underwhelming sales outlook.

Brent crude fell 0.7% to about $78.75 a barrel after Axios reported that Washington, Tehran and Oman were nearing an agreement to reopen the Strait of Hormuz, with a Wednesday announcement targeted. Treasuries advanced along with gold as traders curbed expectations for interest-rate hikes.

Robust earnings from technology megacaps have helped restore investor confidence after a bout of volatility in AI stocks triggered losses at several hedge funds last month. Traders are also watching whether progress toward reopening the key Middle East shipping route extends the recent decline in oil prices, easing inflation pressures and tempering expectations for Federal Reserve rate hikes.

“Tech results over the past week clearly show that AI investment will continue to rise sharply,” said Vey-Sern Ling, managing director at Union Bancaire Privée. “This is reassuring for investors, especially with valuations now looking much more reasonable after the recent correction.”

The MSCI World Semiconductor Index had tumbled more than 20% from its peak in June, driven by worries around the sustainability of AI spending boom and progress in China’s advanced chipmaking. The gauge has rebounded 15% since then, taking its gains this year to 42%.

Earlier, a US chips gauge posted its strongest four-day gain since 2020.

What Bloomberg Strategists Say…

“The broader shift away from pure hardware exposure has already reshaped equity performance globally. If the first phase of the AI rally was defined by chips and optical equipment, the next phase may increasingly belong to the platforms putting the technology to work.”

— Andre de Silva, Strategist, Markets Live. For full analysis, click here.

Technology stocks are rebounding because the three pressures behind the recent selloff — AI spending concerns, higher bond yields and the increase in oil prices — are all easing at the same time, said Charu Chanana, chief investment strategist at Saxo Markets in Singapore. Strong earnings are reassuring investors that AI demand remains intact, while lower oil and bond yields are taking pressure off valuations, she said.

Still, “it’s not an all-clear, especially as returns on AI capex still need to be proven,” Chanana said. “But after leverage and crowded positioning were flushed out, even modest relief can produce an outsized rebound.”

Treasuries extended gains from the New York session as signs of progress toward a diplomatic resolution of the Iran war sent oil prices lower.

The yield on the benchmark 10-year Treasury edged down one basis point to 4.60%. Indian 10-year bonds extended gains after the country’s central bank kept rates unchanged.

The dollar, the haven of choice during the Middle East conflict, weakened against most of its Group-of-10 peers. A Bloomberg gauge of the currency’s strength fell 0.1%, a third day of losses.

Gold, silver and platinum all rose as the non interest-bearing precious metals benefit when interest rates are not increased. Bullion rose 1.4% to about $4,135 an ounce.

Back to geopolitical news, a deal between the US and Iran may help normalize commercial shipping in the strait — a crucial conduit for global energy supplies — and prevent the resumption of fighting in the Middle East.

Qatar said a proposal had been drafted, while US and Iranian officials expressed optimism about an agreement to reopen the crucial waterway, weighing on oil prices.

“With so much optimism now priced into the oil market — and the risk of a repeat of last week’s false dawn still very real — the balance of risks appears to be becoming more skewed back to the upside,” wrote Tony Sycamore, an analyst at IG Markets in Sydney.

Corporate Highlights:

SpaceX fleshed out its plans to compete directly with the largest mobile phone carriers in the US by complementing its satellite-based internet service with land-based infrastructure. The Federal Communications Commission is drafting a ban on imports of some Chinese data center components to protect US data center infrastructure, Reuters reported. India expanded the size of its share sale in Life Insurance Corp. to raise $3.3 billion after the base offer was oversubscribed. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.3% as of 1:50 p.m. Tokyo time Nikkei 225 futures (OSE) rose 3.5% Japan’s Topix rose 1.9% Australia’s S&P/ASX 200 rose 0.7% Hong Kong’s Hang Seng rose 0.1% The Shanghai Composite rose 1.3% Euro Stoxx 50 futures rose 0.4% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1537 The Japanese yen was little changed at 157.60 per dollar The offshore yuan was little changed at 6.7461 per dollar Cryptocurrencies

Bitcoin fell 0.3% to $64,127.21 Ether fell 0.5% to $1,865.79 Bonds

The yield on 10-year Treasuries was little changed at 4.61% Japan’s 10-year yield declined 3.5 basis points to 2.820% Australia’s 10-year yield declined six basis points to 4.91% Commodities

West Texas Intermediate crude fell 0.7% to $75.21 a barrel Spot gold rose 1.4% to $4,133.16 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from John Cheng.

©2026 Bloomberg L.P.