Stocks Extend Record Rally on AI, Yen Nears 160: Markets Wrap
(Bloomberg) — Global equities advanced to new highs as demand for artificial-intelligence stocks intensified, cementing the sector’s role as the market’s main driver. The yen hovered near 160 per dollar.
MSCI’s All Country World Index rose 0.1% to a record, with gauges in Asia and the US setting all-time highs. Tokyo Electron Ltd. and Taiwan Semiconductor Manufacturing Co. climbed to new peaks after the Philadelphia Semiconductor Index rallied almost 6% to a record. South Korean markets were shut for a holiday.
The tech sector remained a key focus, with SpaceX seeking $135 a share for a $75 billion initial public offering, according to Reuters. Futures contracts for the S&P 500 and the Nasdaq 100 were little changed.
Even so, caution crept in as Brent crude rose for a third day on pessimism over the prospects of the US and Iran reaching a peace deal and as fresh fighting flared up in the Middle East. European equities were also set for a modest loss at the open.
Investors piling into AI-linked stocks have propelled global equities to unprecedented levels. Traders have looked past concerns about elevated valuations, betting that strong earnings growth and easing geopolitical tensions will continue to support risk assets.
“Tech continues to dominate the market,” said veteran strategist Louis Navellier. “The trend remains positive, with the catalyst for further material gains possible with a resolution with Iran.”
President Donald Trump remained optimistic the US can reach an interim peace deal soon. He disputed reports in Iranian state media that said talks with Washington had been suspended over the fighting in Lebanon, saying the two sides have been “continuously” having conversations, including “today.”
The yen was in focus as investors awaited Bank of Japan Governor Kazuo Ueda’s planned speech for clues on the outlook for interest rates. Traders are reluctant to push the yen beyond the key 160 level against the dollar in the face of the risk of intervention by authorities to prop up the currency.
In other corners of the market, gold edged lower to about $4,480 an ounce as inflation worries fueled expectations that borrowing costs will stay elevated for longer. Bitcoin slid below $66,000.
Treasuries edged lower, with the yield on the 10-year bond rising one basis point to 4.45%. The first of three labor-market reports due this week reinforced wagers that the Federal Reserve’s next move will be to raise interest rates.
In tariff news, the US is proposing levies of at least 10% on imports from most major trading partners following an investigation into forced-labor practices, as Trump seeks to rebuild the sweeping tariff wall struck down by the US Supreme Court.
Elsewhere, Cliffwater LLC’s flagship private credit fund capped redemptions at 5% in the second quarter after investors looked to pull about 17% of shares, in a sign of enduring pressure on the $1.8 trillion market.
Meanwhile, tensions remained high in the Middle East as the US Central Command said forces defeated multiple Iranian ballistic missiles and drones, and conducted self-defense strikes on Qeshm Island in response to attempted attacks by Iran.
Even as businesses navigated rising energy costs sparked by the Iran war, US job openings jumped in April to the highest level in almost two years and layoffs fell, adding to signs the labor market remains resilient.
“The jobs market continues to hold its ground,” said Bret Kenwell at eToro. “There’s hope that energy prices will retreat after a geopolitically charged surge in the first quarter, allowing the Fed to stay on hold while inflation eases in the second half of the year. Pair that with rising earnings expectations, and it could help propel stock prices higher.”
Corporate News:
Japanese toilet maker Toto Ltd. expects spending in its chip-related operations to make up more than half its total capex in coming years. Marvell Technology Inc. shares surged the most in 26 years after Nvidia Corp.’s Jensen Huang predicted that the semiconductor and networking company would be the next business to hit a $1 trillion valuation. Blackstone Inc. is exploring a sale of its payments services provider SP.LINKS Inc., likely turning a profit a little more than two years after it bought the firm, according to people familiar with the matter. PaXini Tech, a maker of dexterous robotic hands and humanoid robots, is considering a Hong Kong initial public offering, people familiar with the matter said, the latest in the sector looking to tap investor demand. Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 12:56 p.m. Tokyo time Japan’s Topix rose 2.1% Australia’s S&P/ASX 200 rose 0.8% Hong Kong’s Hang Seng fell 1.7% The Shanghai Composite rose 0.6% Euro Stoxx 50 futures fell 0.1% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1627 The Japanese yen was little changed at 159.89 per dollar The offshore yuan was little changed at 6.7679 per dollar Cryptocurrencies
Bitcoin fell 2.4% to $65,867.45 Ether fell 3.8% to $1,831.4 Bonds
The yield on 10-year Treasuries advanced one basis point to 4.46% Japan’s 10-year yield advanced 3.5 basis points to 2.605% Australia’s 10-year yield advanced two basis points to 4.90% Commodities
West Texas Intermediate crude rose 1.1% to $94.77 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.
–With assistance from Rob Verdonck.
©2026 Bloomberg L.P.
