Global Markets React to Geopolitical Tensions and AI Boom
Global markets are closely watching geopolitical developments, particularly following President Trump's statement about a "very good" meeting between senior American and Iranian officials on the sidelines of the UN General Assembly. This news has contributed to a decline in oil prices and a slight drop in U.S. ten-year bond yields, which are hovering near 4.95%. Investors are also anticipating an upcoming meeting between President Trump and Chinese President Xi Jinping, where discussions will likely cover the Middle East, trade, and artificial intelligence.
Asian stock markets are experiencing mixed trading, with Hong Kong and Shanghai showing slight declines, while Seoul sees a modest gain. Tokyo's market is closed for a holiday. On Wall Street, the Nasdaq reached a new all-time high, while the S&P 500 remained flat and the Dow Jones dipped slightly, influenced by falling oil prices.
Memory chip maker SanDisk saw a significant surge of nearly 7%, driven by a "buy" recommendation from investment firm Rosenblatt, which set a price target of $2,400. The stock has already experienced substantial growth this year and over the past year, fueled by the AI boom.
Oil prices continue their downward trend, marking a fifth consecutive day of declines. Brent crude is trading around $98 per barrel, and WTI is near $89, with the recent U.S.-Iran diplomatic news cited as a contributing factor. Meanwhile, Meta Platforms' stock is on track for its strongest month in over 13 years, largely due to optimism surrounding its new AI assistant, Muse. Analysts believe Muse has the potential to become a widely used consumer AI application, offering new monetization opportunities for Meta through advertising and transaction revenue sharing.
The Tel Aviv Stock Exchange closed mixed yesterday, with the TA-35 index rising slightly and the TA-90 index falling. The technology and insurance indices performed well, boosted by AI-related gains on Wall Street, while the oil and gas index declined. In corporate news, the Israel Competition Authority has reportedly demanded that Union Investments sell its stake in Super-Pharm to proceed with its acquisition of Cal, potentially scuttling the deal.