Global Tech Rally Fuels Market Optimism Amid Geopolitical Tensions

Tech stocks rallied globally, boosting equity markets and setting the stage for Nvidia's earnings report. Despite geopolitical concerns around US tariffs and Iran, shares like HSBC and tech giants thrived. Bond yields showed mixed reactions, while oil and copper prices rose amid market optimism.

On Wednesday, a worldwide rally in tech stocks elevated equity markets, as attention turned to Nvidia's upcoming earnings report. Investors temporarily brushed aside concerns about US tariffs, leading to gains in MSCI's world share index and European and US futures. The STOXX 600 index also reached record highs.

Significant advances in Asia contributed to the momentum, with the APAC ex-Japan benchmark climbing sharply due to chip-heavy exchanges in Korea and Taiwan. Concurrently, software stocks experienced a resurgence following new AI developments from Anthropic, highlighting cooperation rather than disruption and bolstering investor confidence.

The market's optimism persisted amidst political and geopolitical challenges. Despite worries over AI, Iran, and tariffs, government bonds in the US and Europe experienced support. The mixed reactions in bond yields and bullish trends in commodity markets, such as oil and copper, underscored the complex financial landscape.

(With inputs from agencies.)