SynopsisGlobal markets are gaining traction as geopolitical worries ease and AI companies report strong earnings. Matt Orton of Raymond James highlights that receding oil prices and sustained AI optimism are turning market dips into buying chances. He emphasizes that while the US dollar's strength poses challenges for emerging markets like India, focusing on quality companies and diversified investments remains key for continued gains.AgenciesHe also noted that increasing use of leveraged investment products could lead to greater volatility.Global markets are drawing confidence from easing geopolitical tensions, cooling oil prices, and another round of robust earnings from artificial intelligence (AI)-linked companies, according to Matt Orton from Raymond James Investment. With crude oil retreating from recent highs and optimism surrounding AI remaining intact, investors are increasingly viewing market pullbacks as buying opportunities rather than reasons for caution.Speaking to ET Now, Orton said that while uncertainties remain around global trade negotiations, the removal of worst-case economic scenarios has significantly improved investor sentiment."We are removing left-tail scenarios from the table. Some of the worst-case outcomes continue to be taken away, and that is encouraging... All of this is fuel for markets to continue to move higher, and it supports my optimistic case to buy the market on weakness and continue to hold it throughout the rest of this year," he added.AI Companies' Debt Not a Major ConcernAddressing concerns over rising debt issuance by AI and semiconductor firms, Orton argued that investors should focus on individual company fundamentals rather than broad market narratives."Most of these companies have incredibly low debt burdens overall... The majority of the hyperscalers' balance sheets remain incredibly clean, and I do not have concerns with respect to their ability to fund and finance," he said.Dollar Strength Could Continue to Pressure Emerging MarketsOrton believes the US dollar remains an underappreciated driver of global markets, particularly for emerging economies like India.He said a stronger dollar has affected foreign investment flows and created headwinds for commodities, including gold and silver."The dollar is going to be the sleeper factor... Rupee weakness has been a key reason why foreign investors have been a little bit resistant to put money back in. Until you start to see the dollar weaken, you are going to continue to see pressure across the broader emerging market complex," he said.Micron Results Reinforce the AI Growth StoryMicron Technology's latest earnings, according to Orton, demonstrate that AI-driven demand remains strong and that supply constraints could persist for several more years."Even the whisper numbers on the buy side were met or exceeded... You are still seeing more backlogs being added, margins being strengthened, and that is just a recipe for continued gains," he said.He added that investors should continue focusing on high-quality companies benefiting from strong earnings momentum.Market Optimism Is Narrow, But Opportunities RemainWhile sentiment has improved considerably, Orton cautioned that the rally is concentrated in a handful of semiconductor stocks rather than the broader market.He also noted that increasing use of leveraged investment products could lead to greater volatility."Investor sentiment is very narrow... It creates opportunities, but it also means investors really need to manage risk," he said.Despite the concentration, Orton believes diversified exposure remains the best strategy."To me, that is an opportunity to own markets like India, Europe, and Japan because those are good diversifiers to that really high beta that you might have in your overall portfolio," he said.Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless(You can now subscribe to our ETMarkets WhatsApp channel)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless