Markets remain resilient as artificial intelligence demand offsets geopolitical risks and rising oil prices at $94.12 a barrel.
Global equities hovered near all-time highs Monday as sustained demand for AI-driven technology countered escalating Middle East tensions and a 3.3% surge in Brent crude to $94.12. The MSCI All-World index traded flat, while Asian markets from Tokyo to Seoul held at or near record levels.
Last week, the S&P 500 and Nasdaq both closed at new highs, with futures pointing to modest gains of 0.3% in early trading. Government bonds sold off as investors priced in higher inflation risks from rising oil prices, reducing expectations for near-term rate cuts.
Recent strikes between U.S. and Iranian forces, along with reported missile interceptions in Kuwait, have raised concerns over supply disruptions in the Strait of Hormuz. Diplomatic efforts continue, though U.S. officials have signaled readiness for further military action if talks fail.