Equity markets reached record levels in H1 2026 despite volatility, with AI-driven gains rotating from hyperscalers to semiconductor and memory stocks.
Global equity markets closed the first half of 2026 at new highs, driven by rotational churn and a shift in the AI trade. The S&P 500 and Nasdaq 100 led gains as investors pivoted from software to hardware and infrastructure stocks, particularly semiconductors and memory names, while gold and bitcoin underperformed.
The Federal Reserve’s new regime, led by an unnamed chair, signals faster policy adjustments to meet inflation targets. US inflation pressures pushed the dollar higher, sending the yen to a 40-year low. Oil prices stabilized at pre-US-Iran war levels, easing geopolitical concerns.
UK political uncertainty looms as Andy Burnham prepares to take office, raising questions about economic policy direction. The upcoming earnings season is expected to shape market trends for the remainder of the year.