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August 5, 2026 - 08:00
7 minutes
(Bloomberg) — Global stocks climbed to a record as investors renewed bets on the artificial intelligence trade, driving gains in chipmakers. Oil and the dollar fell on the prospect of an interim US-Iran deal.MSCI’s All Country World Index rose 0.4%, set for another all-time high close, as its Asia Pacific benchmark climbed 2.2%. Australian shares also hit a new peak. The advances came after the S&P 500 and the Dow Jones Industrial Average both closed at all-time highs Tuesday. Equity-index futures indicated further gains for US and European benchmarks.Chip stocks remained in focus, with SK Hynix Inc. climbing 6.7% in Seoul. Nvidia Corp. advanced 2.2% in post-market trading after Elon Musk touted the company’s Vera Rubin chips. However, a cautious tone lingered as SpaceX shares fell 7.5% in extended trading after the company projected higher-than-expected spending on its AI business. Advanced Micro Devices Inc. dropped about 9% after giving an underwhelming sales outlook.Brent crude fell 0.8% to about $78.75 a barrel after Axios reported that Washington, Tehran and Oman were nearing an agreement to reopen the Strait of Hormuz, with a Wednesday announcement targeted. Treasuries advanced along with gold as traders curbed expectations for interest-rate hikes.Robust earnings from technology megacaps have helped restore investor confidence after a bout of volatility in AI stocks triggered losses at several hedge funds last month. Traders are also watching whether progress toward reopening the key Middle East shipping route extends the recent decline in oil prices, easing inflation pressures and tempering expectations for Federal Reserve rate hikes.“Tech results over the past week clearly show that AI investment will continue to rise sharply,” said Vey-Sern Ling, managing director at Union Bancaire Privée. “This is reassuring for investors, especially with valuations now looking much more reasonable after the recent correction.”The MSCI World Semiconductor Index had tumbled more than 20% from its peak in June, driven by worries around the sustainability of AI spending boom and progress in China’s advanced chipmaking. The gauge has rebounded 15% since then, taking its gains this year to 42%.Earlier, a US chips gauge posted its strongest four-day gain since 2020.What Bloomberg Strategists Say…“The broader shift away from pure hardware exposure has already reshaped equity performance globally. If the first phase of the AI rally was defined by chips and optical equipment, the next phase may increasingly belong to the platforms putting the technology to work.”— Andre de Silva, Strategist, Markets Live. For full analysis, click here.Technology stocks are rebounding because the three pressures behind the recent selloff — AI spending concerns, higher bond yields and the increase in oil prices — are all easing at the same time, said Charu Chanana, chief investment strategist at Saxo Markets in Singapore. Strong earnings are reassuring investors that AI demand remains intact, while lower oil and bond yields are taking pressure off valuations, she said.Still, “it’s not an all-clear, especially as returns on AI capex still need to be proven,” Chanana said. “But after leverage and crowded positioning were flushed out, even modest relief can produce an outsized rebound.”Treasuries extended gains from the New York session as signs of progress toward a diplomatic resolution of the Iran war sent oil prices lower.The yield on the benchmark 10-year Treasury edged down two basis points to 4.59%. Indian 10-year bonds extended gains after the country’s central bank kept rates unchanged.The dollar, the haven of choice during the Middle East conflict, weakened against most of its Group-of-10 peers. A Bloomberg gauge of the currency’s strength fell 0.1%, a third day of losses.Gold, silver and platinum all rose as the non interest-bearing precious metals benefit when interest rates are not increased. Bullion rose 2.2% to about $4,165 an ounce.Back to geopolitical news, a deal between the US and Iran may help normalize commercial shipping in the strait — a crucial conduit for global energy supplies — and prevent the resumption of fighting in the Middle East.Trump told reporters in Los Angeles on Tuesday night that talks with Iran are “moving along very nicely,” adding, “We’ll know in 48 hours.” Qatar said a proposal had been drafted, while US and Iranian officials expressed optimism about an agreement to reopen the crucial waterway, weighing on oil prices.“With so much optimism now priced into the oil market — and the risk of a repeat of last week’s false dawn still very real — the balance of risks appears to be becoming more skewed back to the upside,” wrote Tony Sycamore, an analyst at IG Markets in Sydney.Corporate Highlights:SpaceX fleshed out its plans to compete directly with the largest mobile phone carriers in the US by complementing its satellite-based internet service with land-based infrastructure. Heineken NV’s volumes grew more than expected in the second quarter as strong demand in Asia and Africa offset persistent weakness in Europe and the Americas. Siemens Energy AG said strong demand for gas turbines and grid equipment should push the profit margin in the current fiscal year to the upper end of its guidance corridor. Some of the main moves in markets:StocksS&P 500 futures rose 0.4% as of 6:56 a.m. London time Nasdaq 100 futures rose 0.4% The MSCI Asia Pacific Index rose 2.2% The MSCI Emerging Markets Index rose 2.2% Japan’s Topix rose 2% Australia’s S&P/ASX 200 rose 0.9% Hong Kong’s Hang Seng rose 0.2% The Shanghai Composite rose 1.6% Euro Stoxx 50 futures rose 0.4% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1537 The Japanese yen was little changed at 157.62 per dollar The offshore yuan was little changed at 6.7456 per dollar The British pound was little changed at $1.3457 CryptocurrenciesBitcoin was little changed at $64,303.59 Ether fell 0.2% to $1,872.25 BondsThe yield on 10-year Treasuries declined two basis points to 4.59% Japan’s 10-year yield declined five basis points to 2.805% Australia’s 10-year yield declined seven basis points to 4.90% CommoditiesSpot gold rose 2.3% to $4,170.05 an ounce West Texas Intermediate crude fell 1.2% to $74.88 a barrel This story was produced with the assistance of Bloomberg Automation.–With assistance from John Cheng.©2026 Bloomberg L.P.
