Markets Climb as AI Buzz Grows and Israel-Hamas Peace Deal Emerges

Global stock markets continue their rally, driven by renewed enthusiasm for artificial intelligence. The MSCI World Index has recorded its ninth positive session in ten days, while in Asia, tech stocks like SoftBank led a 0.4% gain.

China, reopening after the Golden Week holiday, saw a 1.6% jump, catching up after the break. However, domestic consumption remains weak: households are opting for cheaper road trips over flights, and box office revenues have disappointed.

The AI boom has continued to dominate markets during China’s closure, fueled by positive news surrounding OpenAIand links to publicly traded companies. According to some analysts, Chinese stocks may now be in for a period of “catching up.”

In the United States, indices once again closed at record highs. Investors seem to have put aside fears of a tech bubble and are now betting on a potential resumption of interest rate cuts by the Fed. The focus, however, is shifting to earnings season: “Investors want to see whether profits truly justify such high valuations,” said Aidan Yao of Amundi.

On the geopolitical front, former President Trump announced a deal between Israel and Hamas for the release of hostages—a first step toward ending the conflict. In Europe, President Macron pledged to appoint a new prime minister by Friday, avoiding early elections for now.

Meanwhile, the U.S. has approved Nvidia chip exports to the United Arab Emirates, as part of a controversial deal that could shape American AI diplomacy. At the same time, China has announced tighter restrictions on rare earth exports, including for items manufactured abroad, further escalating tensions with Washington.