Global Stocks Defy Geopolitical Jitters as Tech Roars Back on AI Momentum

Global stock markets are largely shaking off fresh US-Iran tensions, with major indexes closing higher as investors flock back to the tech sector. The tech-heavy Nasdaq Composite jumped notably on Thursday, fueled by strong demand for AI-related companies like South Korean chip giant SK hynix, whose upcoming US listing is reportedly seven times oversubscribed. This market resilience comes even as the US launched new airstrikes and revoked Iran's oil export waiver, prompting FHN Financial Chief Economist Christopher Low to note, 'Any disruption in the region is not as harmful as before' due to increased oil production elsewhere. This comeback reflects a 'wall of worry' phenomenon, where markets tend to recover even before major conflicts are fully resolved. Despite recent volatility tied to concerns over AI valuations and a June selloff, massive capital expenditure by tech giants continues to drive the sector, with hyperscalers projected to invest approximately $650 billion in AI infrastructure in 2026 alone. While the broader 'Magnificent Seven' tech leaders have seen mixed performance, the rally is increasingly focused on core AI infrastructure providers, particularly semiconductor manufacturers in Asia like SK hynix. Looking ahead, investors will be closely watching for any escalation in the US-Iran conflict, which could impact oil prices and global supply chains through vital routes like the Strait of Hormuz. The Federal Reserve next moves on interest rates also remain a key factor, especially amid sticky inflation readings and mixed signals from recent US jobs data. The underlying strength of corporate earnings and the continued, albeit evolving, AI boom are expected to maintain market momentum, but investors will need to stay agile as new risks and opportunities emerge.