Stocks around the world climbed to fresh record highs on Wednesday (6 May), while oil prices fell sharply, after reports suggested the United States and Iran were nearing an agreement to end conflict.
Investors also continued to pour into artificial intelligence-related shares, helping to drive gains across global markets.
Brent crude, the international benchmark for oil prices, initially dropped to just below $100 a barrel, its lowest level in two weeks. Brent later settled 7.83% lower at $101.27 a barrel.
U.S. West Texas Intermediate crude also declined by about 7%, ending the session at $95.08.
On Wall Street, strong corporate earnings helped extend a rally in U.S. equities. The Dow Jones Industrial Average rose 1.24%, while the S&P 500 gained 1.46%. The Nasdaq Composite jumped 2%, with both the S&P 500 and Nasdaq reaching fresh highs.
European markets also advanced. The STOXX 600 index extended earlier gains and was last up 2.2%, after rising 0.7% the previous day. MSCI’s All-Country World Index climbed 1.64% to a new record.
Michael Brown, Senior Research Strategist at Pepperstone, said markets appeared to be responding aggressively to hopes of a breakthrough.
“A pretty punchy move on the back of those stories, almost as if the market has shifted into ‘buy everything’ mode,” he said.
Brown added that uncertainty remained over how close the two sides were to reaching an agreement.
“It’s difficult to say how close to a deal we might be. Market participants, though, aren’t going to wait for confirmation of good news and are essentially now front-running a positive outcome.”
The U.S. dollar, which had benefited from safe-haven demand during the conflict, fell 0.3% against a basket of major currencies as investors grew more optimistic about a possible deal.
Japan’s yen strengthened by as much as 1.8% against the dollar in a rapid move that prompted speculation of another round of market intervention.
Government bond yields also moved lower alongside oil prices, as traders reduced expectations for further central bank interest rate increases. The yield on the benchmark 10-year U.S. Treasury note fell 6.4 basis points to 4.352%.
Despite the strong gains in equities, analysts warned that continued volatility in energy and bond markets could still weigh on global economic growth.
Oil prices remain around 35% higher than when the conflict began in late February, while yields on 10-year U.S. Treasuries are roughly 40 basis points higher.
Technology shares linked to artificial intelligence (AI) were among the strongest performers.
In the United States, shares in chipmaker Advanced Micro Devices surged about 18.6% after the company forecast second-quarter revenue above Wall Street expectations, fuelling further enthusiasm for AI-related investments.
Rival Intel also climbed to a record high, while Arm Holdings and Qualcomm posted strong gains.
The rally spread into Asia, where the broadest index of Asia-Pacific shares outside Japan rose 3.2%.
Samsung Electronics jumped 14%, lifting the company’s market value above $1tn and pushing it ahead of Berkshire Hathaway.
Shipping through the Strait of Hormuz has slowed, according to the latest data, as uncertainty over the waterway’s reopening kept most s...
Azerbaijan’s strategic rise is turning it from a transit state into a regional rule-setter, with the Middle Corridor giving Baku growing infl...
The U.S. imposed sanctions on the International Criminal Court's (ICC) President Tomoko Akane and a senior tri...
U.S. President Donald Trump says Washington is not seeking an extension of its memorandum of understanding with Iran, claiming the U.S. already controls the Strait of Hormuz through its naval blockade.
Iran has said the Strait of Hormuz will remain closed until the U.S. fulfils the terms of an interim deal, including lifting the maritime blockade and sanctions and releasing Iran’s frozen assets.
Shipping through the Strait of Hormuz has slowed, according to the latest data, as uncertainty over the waterway’s reopening kept most shipowners away. Six commodity vessels crossed the strait on Tuesday, down from nine the day before and below the 10-day daily average of 11.
Ukraine has targeted at least 20 Wildberries warehouses across Russia since 18 July, disrupting a major logistics network. Kyiv says the strikes aim to disrupt alleged military-linked supplies, while the attacks have caused billions of dollars in losses and wider economic pressure.
Russia said its air defences downed 180 drones over the Moscow region overnight, with 620 drones reportedly targeting the area, according to Moscow Mayor Sergei Sobyanin.
Azerbaijan exported goods worth $17.372 million to Armenia between January and July 2026, according to data from the State Customs Committee, as commercial ties between the two South Caucasus neighbours showed signs of expansion.
Online fast-fashion platform Shein lost a London copyright lawsuit against rival Temu on Thursday over photographs used to promote some products.
Norway’s $2.3 trillion sovereign wealth fund has revealed a 0.05 per cent stake in SpaceX worth $1.22 billion, marking its first reported holding in Elon Musk’s space company.
U.S. data analytics firm Palantir Technologies has reported a 93 per cent year-on-year jump in second-quarter revenue, even as the company faces continued criticism over its work with Israel's military and allegations linking its technology to the war in Gaza.a.
Rising trade across the Caspian Sea is strengthening Georgia’s role as a logistics hub and could help the country develop higher-value industries, according to the Asian Development Bank (ADB).
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment