Global equity markets continued their upward trajectory, fueled by growing expectations of renewed negotiations between the United States and Iran. Several major markets have now erased all losses incurred since the outbreak of the Middle East conflict, while oil prices held below the $100 per barrel threshold.
On Wednesday, the 15th, the MSCI All-Country World Index rose by 0.2%, marking its ninth consecutive day of gains and achieving its longest winning streak since last September. The Asia-Pacific equity index advanced by 1.1%, and the S&P 500 index neared the record high it set in late January.
In US evening trading, semiconductor and storage-related stocks experienced a collective decline. ASML Holding NV saw its shares fall by over 2% at one point, Micron Technology dropped by 1.7%, and Taiwan Semiconductor Manufacturing saw its gains narrow to 0.4%. While ASML raised its full-year sales guidance, its second-quarter outlook fell slightly short of market expectations.
The yield on the 10-year US Treasury note remained largely unchanged at 4.25%.
The US Dollar Index was mostly flat after a seven-day losing streak.
Brent crude oil prices fluctuated within a narrow range on Wednesday, ultimately closing approximately 1% higher at $95.75 per barrel.
Gold prices edged lower, trading around $4,825 per ounce.
Copper prices have now recovered all losses sustained in the six weeks following the outbreak of the Middle East conflict.
Bitcoin increased by 0.3%, reaching $74,346.15.
Oil prices exhibited low-level volatility, contributing to a marginal easing of inflationary pressures. Brent crude ended Wednesday's session about 1% higher at $95.75 per barrel, having briefly dipped below $94 earlier due to comments from the US President suggesting the war was "nearing an end." Despite this stabilization, prices remained below the $100 mark, a key level watched by markets for gauging inflation pressure.
US Treasury bonds extended their gains, reflecting how lower oil prices help temper inflation expectations. The Bloomberg Dollar Index was essentially flat after seven days of declines. Gold prices softened to approximately $4,825 per ounce, while copper prices fully recovered their post-conflict losses.
Despite the improved market sentiment, fundamental risks in the Middle East remain unresolved. The US continues to enforce a maritime blockade in the Strait of Hormuz to curb Iranian oil exports, with the strategic contest for control of this vital waterway ongoing.
ASML Raises Full-Year Sales Outlook, Driven by AI Investment Wave In the technology sector, chip equipment giant ASML Holding NV issued a statement on Wednesday raising its full-year net sales forecast. The new range is €36 billion to €40 billion (approximately $42.4 billion), up from the previous guidance of €34 billion to €39 billion. The company cited sustained demand for advanced chip manufacturing equipment driven by the global artificial intelligence investment boom.
ASML is the world's sole producer of extreme ultraviolet (EUV) lithography machines, which are core infrastructure for manufacturing AI training and inference chips, such as those used by Nvidia. The company's Chief Executive Officer, Christophe Fouquet, stated in the release, "The semiconductor industry's growth prospects continue to solidify. Driven by ongoing AI infrastructure investments, our customers are accelerating their capacity expansion plans."
However, the company's second-quarter outlook, announced the same day, was slightly below expectations. Consequently, its US-listed shares fell over 2% in evening trading, Micron Technology declined 1.7%, and Taiwan Semiconductor Manufacturing pared gains to 0.4%.
Year-to-date, planned investments of trillions of dollars in AI infrastructure by tech giants like Microsoft and Alphabet, as well as startups like OpenAI and Anthropic PBC, have contributed to a 39% surge in ASML's share price. Taiwan Semiconductor Manufacturing announced capital expenditure plans of up to $56 billion in January, and SK Hynix has entered into an advanced equipment procurement agreement with ASML worth approximately $8 billion, extending through 2027.
Earnings Season Kicks Off, Showcasing Corporate Resilience Against a backdrop of ongoing macroeconomic uncertainty, the first-quarter earnings season has begun with overall results surpassing market expectations. Although JPMorgan Chase reported record quarterly trading revenue, its stock price closed slightly lower. Conversely, Citigroup's stock rose after reporting its highest quarterly return on tangible common equity in five years.
BlackRock reported net inflows of $130 billion for the quarter, demonstrating continued capital inflows despite significant volatility in both public and private markets, as well as prolonged uncertainty stemming from the Iran conflict. The company's shares advanced by 3%.
Scott Helfstein, Head of Investment Strategy at Global X ETFs, commented, "Corporations continue to demonstrate remarkable resilience in the face of supply chain challenges, tariffs, and energy shocks, which should be a positive signal for investors."
Further updates will follow as the situation develops.
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