Overview:

Global markets displayed mixed momentum Thursday and Friday as technology stocks rallied—particularly semiconductor firms following Micron Technology's gains—offsetting geopolitical concerns. Oil prices climbed toward a 6% weekly gain amid escalating U.S.-Iran military tensions, while Asian markets extended gains led by South Korean equities and Japanese stocks. Gold remained stable above $4,100 per ounce despite inflation concerns from Middle East developments.

Details:

The Nasdaq achieved a sharp close Thursday, driven by strength in semiconductor and technology stocks. Meanwhile, European equities halted their previous decline, signaling recovery momentum. Asian markets Friday saw notable gains across the region, with the Nikkei index advancing on momentum from technology and semiconductor sectors. SoftBank jumped 11% as artificial intelligence-related stocks continued their upward trajectory across Asia-Pacific markets.

Oil prices advanced toward a 6% weekly gain amid renewed hostilities between the United States and Iran. Market participants assessed potential supply disruptions and their inflationary implications. The yen weakened to its lowest level against the British pound since 2007, approaching four-decade lows as traders monitored potential intervention by Japanese authorities. The Japanese currency's deterioration reflected broader currency market volatility and carried implications for regional exporters.

In corporate developments, the Emirates Telecommunications Group completed the sale of its Vodafone stake for 21.8 billion dirhams, concluding their cooperation agreement. Dubai's real estate sector continued its historic momentum, with sales surpassing 286.4 billion dirhams during the first half of 2026. Artificial intelligence investment projections showed significant growth expectations, with global spending on AI technologies forecast to reach $750 billion by 2026—a 50% increase. OpenAI's leadership reported a new model achieving 55% greater efficiency in token usage.

Outlook:

Investors are closely monitoring the trajectory of U.S.-Iran tensions for potential impacts on oil supply and inflation dynamics across global markets. The sustained momentum in semiconductor and technology stocks, coupled with rising artificial intelligence investment, suggests continued sector rotation toward innovation-focused companies as central concern. Currency volatility, particularly the yen's weakness, warrants attention for implications on Asian export competitiveness and regional monetary policy responses.