Traders grapple with two-sided tail risks as global stocks regain highs

4 articles · Updated · Bloomberg · May 3

US megacap tech earnings and the Federal Reserve meeting failed to cool enthusiasm, while the Iran conflict pushed oil prices higher and kept European options volatility elevated.
Investors face competing risks from a relentless AI and semiconductor rally on one side and the inflationary drag of higher energy costs on the other.
The tension follows a V-shaped recovery in equities after the Iran oil shock, with concern that pricier crude could prolong higher interest rates, especially in Europe.

As an AI rally and an oil crisis pull markets apart, which force will ultimately triumph?

With AI stocks mirroring dot-com era warnings, are investors ignoring the painful lessons of history?