MSCI World Hits Record High as AI Rally Lifts Nikkei and KOSPI About 2%
Updated
Updated · Reuters · May 29
MSCI World Hits Record High as AI Rally Lifts Nikkei and KOSPI About 2%
8 articles · Updated · Reuters · May 29
MSCI’s world stock index edged to a record high on Friday, with the S&P 500 also coming off another all-time close at 7,563.63.
AI demand drove the move: chipmakers rallied globally and Dell jumped 39% after hours after raising revenue and profit forecasts on strong AI-server sales.
Brent crude fell about 50 cents to $93.17 and headed for a weekly drop of more than 10% as traders priced in a possible U.S.-Iran deal to reopen the Strait of Hormuz, though Trump has not approved it.
Bond and currency markets were steadier, with the 10-year Treasury yield at 4.45%, the yen near 159.26 per dollar and Japan’s data still supporting bets on a June rate hike.
Investors now await European inflation data and Canadian GDP, while analysts say any Hormuz deal may remove extreme tail risk without quickly reversing the fuel-driven inflation shock.
AI promises deflation while Mideast conflict fuels inflation. Which powerful force will steer the global economy?
As AI investment soars into trillions, is this a sustainable boom or the biggest speculative bubble in history?
With AI's thirst for power restarting nuclear reactors, what is the true environmental cost of this revolution?
AI Revolution Propels Global Markets to New Peaks in May 2026 Amid Geopolitical and Economic Risks
Overview
In May 2026, global stock markets soared to record highs, fueled by the ongoing artificial intelligence (AI) revolution. This surge was especially strong in Asia and the U.S., with South Korea’s KOSPI index jumping over 13.5%—its biggest gain since 2008—driven by rallies in major semiconductor companies like Samsung and SK Hynix. The AI boom boosted demand for chips, making semiconductor firms key drivers of market growth. As a result, regional indices in Taiwan and Japan also posted impressive gains, highlighting how the AI revolution and strong performance in tech sectors powered the global market rally.