Global Markets Wrap: Record Equity Rally, Rising Oil Prices, and Persistent Geopolitical Tensions

index Update
U.S. equities closed at record highs on Wednesday, supported by an extension of the Iran ceasefire and robust corporate Earnings. The S&P 500, Nasdaq 100, and Dow Jones advanced 1.1%, 1.7%, and 0.7%, respectively, as investors embraced a risk-on approach despite ongoing geopolitical uncertainty. Technology and AI-linked stocks led the rally, with semiconductor players such as Broadcom, AMD, and Micron posting strong gains. GE Vernova surged on optimistic Data Center Demand guidance, while Boeing rose on improved Cash Flow and higher aircraft deliveries. Apple gained on Leadership transition optimism, and Tesla edged higher ahead of its Earnings announcement.

Market Movers
Among individual stocks, Akanda Corp. recorded a sharp gain of 214.15%, emerging as the top performer, followed by Axe Compute Inc, which rose 79.30%. On the downside, Avis Budget Group declined 37.82%, while Solidion Technology dropped 32.44%, making them the session’s biggest laggards.

Commodities Update
Oil prices extended their rally, with WTI crude surpassing $94 and Brent moving above $103 per barrel, marking a fourth consecutive day of gains. The rise was driven by escalating U.S.–Iran tensions, disruptions in the Strait of Hormuz, and concerns over global Supply. Reports of tanker interceptions, restricted maritime traffic, and continued blockades have heightened uncertainty, even as the ceasefire remains in place. Additionally, EIA data indicating declines in U.S. refined product inventories pointed to strong Demand from both domestic and export markets.
In contrast, precious metals declined, with gold easing toward $4,700 and silver falling to around $76 per ounce. Despite geopolitical risks, metals have faced pressure due to rising energy prices fueling Inflation concerns and increasing the likelihood of prolonged higher interest rates. Since the onset of the conflict, gold is down around 10% and silver approximately 17%.

Macro Updates
The U.S. dollar index remained firm near 98.5, hovering at over one-week highs as stalled peace negotiations and continued disruptions in key oil transit routes supported safe-haven Demand. Elevated Inflation risks have reinforced expectations that the Federal Reserve will maintain a steady rate stance, while policymakers continue to emphasize Central Bank independence. Market Participants are now focusing on upcoming jobless claims and PMI data for further economic signals.

Bonds Commentary
U.S. Treasury yields moved higher, with the 10-year Yield rising to around 4.31%, a more than one-week high. Persistent geopolitical tensions and elevated energy prices have kept Inflation concerns at the forefront, strengthening expectations that the Federal Reserve will keep interest rates unchanged. Investors are closely watching incoming economic data for additional direction.

Futures Update
U.S. stock futures traded lower on Thursday as geopolitical tensions in the Middle East weighed on sentiment, despite the extension of the Iran ceasefire. However, the market’s sensitivity to geopolitical developments appears to be easing, with investors increasingly focusing on corporate Earnings and continued strength in AI-driven Investment trends. Futures for the Dow, S&P 500, and Nasdaq 100 all edged lower following the previous session’s strong gains.

Stocks surged higher on Wednesday, fully reversing the weakness seen over the prior two sessions. The rally pushed both the Nasdaq and the S&P 500 to fresh record closing highs. The S&P 500 climbed 73.87 points, or 1.05%, to finish at 7,137.89. Technically, the index has broken above a key resistance zone, opening the door for further upside. However, the 14-period RSI remains in overbought territory, signaling a note of caution and suggesting that momentum could begin to cool or consolidate. In the near term, resistance is seen around 7,200, while support is positioned near 6,955.