Tech Rally Fuels Global Share Surge Amid AI and Political Uncertainties

Global markets experienced a surge in share prices, largely driven by a rally in technology stocks, while investor worries about U.S. tariffs and the implications of artificial intelligence took a back seat. On Wall Street, major indexes climbed, spurred by gains in tech and financial stocks. The Dow Jones Industrial Average increased by 0.43%, S&P 500 by 0.60%, and Nasdaq Composite by 0.96%.

European stocks followed suit, as MSCI's world share index climbed 0.78% and Europe's STOXX 600 advanced 0.69%. The boost was bolstered by recent announcements from AI lab Anthropic about new plug-ins, emphasizing the growing significance of AI in market trends. Aaron Schaechterle from Janus Henderson Investors highlighted AI's impact, noting both capital expenditure growth in data centers and the potential challenge it poses to established software companies.

Despite political and geopolitical challenges, such as potential U.S.-Iran conflict, U.S. President Donald Trump used the stock market gains to his advantage during the State of the Union address. Meanwhile, bond yields in the U.S. and Europe edged up, oil prices saw a decline due to a surprising U.S. crude stock increase, and currency movements reflected a weaker dollar against major counterparts.