Markets steady as diplomacy resumes, while tech stocks surge on strong earnings and AI-driven momentum…..
Global oil prices retreated on Friday as renewed diplomatic signals from the Middle East eased investor fears over prolonged supply disruptions, even as equity markets delivered a mixed performance.
Crude had surged earlier in the week amid mounting concerns over the conflict involving Strait of Hormuz, a critical route for global energy shipments after tensions between Iran and the United States intensified. However, sentiment shifted after reports that Iran’s foreign minister, Abbas Araghchi, was en route to Islamabad for potential talks.
The development raised expectations that a second round of negotiations could help defuse the crisis, which has rattled energy markets and disrupted supply chains across the Gulf.
Benchmark Brent crude slipped back below the $100 mark, reversing earlier gains as traders reacted to the possibility of easing tensions. Analysts noted that investors were quick to shift back toward riskier assets on signs of diplomatic progress.
Further supporting market sentiment was news that Israel and Lebanon had agreed to extend a temporary ceasefire, reducing the immediate risk of wider regional escalation.
While oil markets cooled, Wall Street saw modest gains led by technology shares. The Nasdaq Composite edged higher, buoyed by a strong rally in semiconductor stocks.
Intel stood out, with its shares surging sharply after the company exceeded quarterly earnings expectations and projected stronger demand driven by data centre growth. The performance reinforced ongoing optimism around artificial intelligence, which continues to fuel investor appetite for chipmakers.
Despite some volatility, broader US indices also ticked upward, with both the S&P 500 and Dow Jones Industrial Average posting gains in early trading.
Not all tech news was positive. Meta and Microsoft made headlines with workforce reductions as they ramp up spending on artificial intelligence infrastructure.
Meta plans to cut roughly 10 percent of its workforce, while Microsoft is offering buyouts to thousands of employees in the United States. Analysts suggest the layoffs are more closely tied to post-pandemic overexpansion than a direct result of AI replacing jobs though the scale of investment in the technology remains significant.
Investors are now turning their attention to a wave of upcoming earnings reports from major tech firms, including Alphabet, Meta, Microsoft, Amazon, and Apple.
Across Europe, markets struggled to maintain momentum. Indices in London and Paris traded lower, while Germany’s DAX remained flat despite fresh data showing a decline in business confidence.
According to Clemens Fuest, head of the Ifo Institute, the ongoing Middle East tensions are weighing heavily on Europe’s largest economy, with companies growing increasingly cautious about the months ahead.
For now, global markets appear caught between geopolitical uncertainty and economic resilience. While diplomatic progress has offered some relief, the situation remains fluid leaving investors to navigate a delicate balance between risk and opportunity.
With oil prices still sensitive to developments in the Gulf and tech stocks riding the AI wave, the coming days could prove pivotal for market direction worldwide.
