AI Surge Fuels Global Stock Optimism Amid Gulf Tensions

Global stocks reached record highs as enthusiasm for AI counterbalanced tensions in the Gulf, including fresh attacks and rising oil prices. While the U.S. and Iran work on a possible deal, markets remain optimistic. AI's influence is seen in South Korea’s record exports and Nvidia's focus at Computex.

Global stocks soared to record levels on Monday, powered by the ongoing AI boom, even as escalating tensions in the Gulf region threatened market optimism. Fresh reports of strikes and counter-strikes between the U.S. and Iran offset the positive momentum created by talks potentially reopening the Strait of Hormuz, leading to a spike in oil prices.

The MSCI All-World index climbed 0.13%, reflecting strong performances across Asian markets despite geopolitical uncertainties. "Negotiations are still ongoing; markets are optimistic that a deal will be found to end the Middle East standoff," said Kathleen Brooks, research director at XTB.

Meanwhile, Nvidia's Jensen Huang highlighted AI's critical role in the tech landscape during the Computex trade show in Taiwan. The inflationary impact of rising oil prices continued to challenge bond markets, while U.S. and European stock futures showed limited gains, navigating the balance between energy sector climbs and losses in airlines and defense shares.