AI-Fueled Tech Rally Lifts Global Markets Despite Elevated Oil Prices

ERBIL (Kurdistan24) – Global stock markets advanced on Wednesday, led by technology shares as investor confidence in artificial intelligence (AI) rebounded after several weeks of volatility. The gains came despite oil prices remaining near their highest levels in a month amid the ongoing conflict with Iran.

On Wall Street, the S&P 500 rose 0.4%, putting the benchmark index on course for its fourth gain in five trading sessions. The Dow Jones Industrial Average climbed 189 points, or 0.4%, while the Nasdaq Composite, which is heavily weighted toward technology stocks, gained 0.6% in morning trading.

The rally began in Asia, where South Korea's Kospi index surged 6.2%, driven by heavyweight technology firms Samsung Electronics and SK Hynix. The sharp rebound followed steep declines of 8.9%, 7.9%, and 5.3% earlier this month.

In Europe, Dutch semiconductor equipment maker ASML boosted investor sentiment after reporting stronger-than-expected quarterly revenue growth. The company also issued an upbeat revenue forecast for the summer, citing continued demand from customers expanding their AI-related investments.

ASML Chief Executive Christophe Fouquet said the ongoing AI boom is encouraging chipmakers to accelerate capacity expansion, helping ease concerns that had recently weighed on AI-related stocks.

Investors have grown increasingly cautious in recent weeks over whether the rapid growth in demand for AI chips and data centers can generate enough profits and productivity to justify massive investments, prompting volatility across the sector.

Strong corporate earnings have also supported U.S. markets.

Asset management giant BlackRock jumped 7.3% after reporting quarterly profit and revenue that exceeded analysts' expectations. Chief Executive Laurence Fink said the company's iShares exchange-traded funds surpassed $6 trillion in assets under management during the quarter, roughly doubling over the past three years.

Financial stocks also posted gains, with Bank of New York Mellon rising 2.7% and Morgan Stanley adding 0.6% after both reported solid quarterly earnings. Their results followed a series of better-than-expected earnings reports from several major U.S. banks released a day earlier.

Despite persistent geopolitical tensions and elevated oil prices linked to the Iran conflict, investors appeared encouraged by resilient corporate earnings and renewed optimism surrounding AI-driven growth.