Global Markets Rally as Easing U.S.-Iran Tensions Boost Investor Confidence

Global equities surged after easing U.S.-Iran tensions and strong U.S. manufacturing data lifted sentiment, while oil prices fell sharply and technology stocks powered gains across Wall Street.

Global Markets Extend Rally

Global equity markets began the week on a strong footing as easing geopolitical tensions in the Middle East and resilient U.S. economic data encouraged investors to return to risk assets.

On Wall Street, the Dow Jones Industrial Average climbed 1.32% to a record closing high of 53,178.41, while the S&P 500 gained 1.48% to finish at 7,600.50. The Nasdaq Composite outperformed with a 2.13% jump to 25,913.90, supported by renewed buying in major technology companies and artificial intelligence-related semiconductor stocks.

Market sentiment improved after U.S. President Donald Trump suspended planned military strikes on Iran in favour of renewed diplomatic engagement. The de-escalation reduced concerns over potential supply disruptions in the Middle East, sending Brent crude prices tumbling by more than five percent to around US$83.75 per barrel.Adding to the optimism, the latest U.S. ISM Manufacturing Purchasing Managers’ Index rose to 55.6, exceeding market expectations and signalling stronger industrial activity.

The robust reading reinforced confidence that the world’s largest economy remains on solid footing despite ongoing global uncertainties.European markets also extended gains, with the STOXX Europe 600 rising 0.45% to a record close of 652.09 points. Lower sovereign bond yields and a rebound in banking and insurance stocks helped support the regional benchmark.In Asia, however, trading was more mixed.

Japan’s Nikkei 225 declined 0.94%, while South Korea’s Kospi fell more than five percent as investors locked in profits following recent rallies in artificial intelligence and memory chip-related shares. Australia’s ASX 200 edged higher, tracking Wall Street’s positive lead.

Meanwhile, gold prices remained firm near US$4,053 per ounce as investors maintained some defensive positioning despite the broader improvement in market sentiment. Currency markets were relatively stable, with the Australian dollar strengthening modestly while the Japanese yen held firm following recent intervention measures.

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