Markets recover from a $9 trillion March dip as AI-driven gains offset geopolitical turmoil and oil price spikes.
Global equities added $7 trillion in market capitalization during the first half of the year, rebounding from a $9 trillion drop in March. The surge followed a sharp sell-off triggered by the Iran war, which pushed oil to $120 a barrel and delayed interest rate cuts.
The MSCI All-Country World Index rose nearly 10%, marking its strongest second quarter since 2020. South Korea’s market outperformed with a 100% gain, while Japan’s Nikkei climbed 40%. However, the “Magnificent Seven” tech stocks underperformed as a group, and gold lost momentum.
Currency markets saw the yen hit a 40-year low despite Tokyo’s 11.7 trillion yen ($72.25 billion) intervention to support it. Analysts noted the resilience of global markets amid unprecedented geopolitical risks.