World Stocks Hit 3rd Straight Record High as AI Rally Extends 15% Rebound
Updated
Updated · Reuters · May 14
World Stocks Hit 3rd Straight Record High as AI Rally Extends 15% Rebound
13 articles · Updated · Reuters · May 14
MSCI’s global stock index notched a third straight record high, extending its rebound from Iran-war lows to 15% as Wall Street futures pointed 0.3% higher and Europe’s STOXX 600 gained 0.5%.
AI demand remained the main driver: Nvidia was seen rising nearly 2% after Reuters reported Washington cleared about 10 Chinese firms to buy its H200 chip, while Japan’s Nikkei hit a fresh peak and SK Hynix neared a $1 trillion valuation.
Beijing added support as Xi told Trump trade talks were making progress, encouraging investors to bet tariff and technology deals could keep the rally going despite a warning on Taiwan.
Markets still faced inflation risks from policy and geopolitics — Brent held at $106.50 and WTI at $101.33, both up roughly 50% since late February, while hotter U.S. inflation data lifted the dollar and Treasury yields.
Britain’s political turmoil added another strain: sterling hovered near $1.3505 and 10-year UK borrowing costs stayed above 5% after Health Minister Wes Streeting resigned and urged Prime Minister Keir Starmer to step aside.
With AI booming and oil prices soaring, which force will ultimately define the future of the global economy?
As the U.S. relaxes AI chip sales to China, what are the hidden risks for the global tech supply chain?
S&P 500 Earnings Growth Hits 27.7% on AI Surge: Can the Rally Survive Inflation and Geopolitical Shocks?
Overview
Global stock markets are experiencing a strong rally, mainly driven by the rapid growth of artificial intelligence and semiconductor sectors. This surge began with the launch of ChatGPT in late 2022, which sparked a wave of interest in generative AI and led to Nvidia dominating the initial infrastructure buildout. As a result, the S&P 500 has reported much higher earnings, with sectors like Communication Services, Information Technology, and Consumer Discretionary leading the way. The healthy AI economy and recent revenue growth have justified large capital investments, fueling optimism and further boosting market performance.