{"id":62086,"date":"2026-05-18T20:38:14","date_gmt":"2026-05-19T00:38:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-as-trump-pauses-iran-strikes-google-and-blackstone-unveil-5b-ai-venture\/62086\/"},"modified":"2026-05-18T20:38:14","modified_gmt":"2026-05-19T00:38:14","slug":"global-markets-rally-as-trump-pauses-iran-strikes-google-and-blackstone-unveil-5b-ai-venture","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-as-trump-pauses-iran-strikes-google-and-blackstone-unveil-5b-ai-venture\/62086\/","title":{"rendered":"Global Markets Rally as Trump Pauses Iran Strikes; Google and Blackstone Unveil $5B AI Venture"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>U.S. President Trump has delayed planned strikes on Iran<\/strong> following requests from Saudi Arabia, the UAE, and Qatar, sparking a relief rally in Asia-Pacific markets.<\/li>\n<li><strong>Google (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>) and Blackstone (<a href=\"\/stock\/BX\">BX<\/a>) are launching a $5 billion AI cloud venture<\/strong> targeting 500 megawatts of computing capacity by 2027.<\/li>\n<li><strong>Japan\u2019s Q1 GDP growth beat expectations at 2.1% annualized<\/strong>, driven by stronger-than-expected private consumption and net exports.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> rose 0.4% to $4,585 an ounce<\/strong> as a hedge against ongoing uncertainty, despite being down 13% since the start of the Iran conflict.<\/li>\n<li><strong>Vladimir Putin hailed &quot;unprecedented&quot; Russia-China relations<\/strong> ahead of a state visit, emphasizing mutual support for sovereignty and strategic cooperation.<\/li>\n<\/ul>\n<h2>Geopolitical De-escalation Boosts Market Sentiment<\/h2>\n<p>Global markets reacted positively after <strong>U.S. President Trump announced a pause on planned military strikes against Iran<\/strong>. The decision came after diplomatic interventions from <strong>Saudi Arabia, the UAE, and Qatar<\/strong>, who requested more time to negotiate a potential nuclear deal.<\/p>\n<p>In response, the <strong>ASX 200 (<a href=\"\/stock\/%5EAXJO\">^AXJO<\/a>) climbed 1.1% to reach 8,598.10<\/strong>, while Japan\u2019s <strong>Nikkei 225 (<a href=\"\/stock\/%5EN225\">^N225<\/a>) rose 0.7%<\/strong>. However, the <strong>KOSPI (<a href=\"\/stock\/%5EKS11\">^KS11<\/a>) bucked the trend, falling 1.6%<\/strong> during early trade. <em>Analysts suggest that while the pause provides short-term relief, the underlying regional tensions remain a primary concern for volatility.<\/em><\/p>\n<p><strong>Gold (<a href=\"\/stock\/XAUUSD\">XAU\/USD<\/a>)<\/strong> saw a modest recovery, rising <strong>0.4% to approximately $4,585 per ounce<\/strong>. Despite this uptick, the precious metal remains down more than <strong>13% since the outbreak of the Iran war<\/strong>, pressured by high <strong>Treasury yields and elevated energy costs<\/strong>.<\/p>\n<h2>Tech Giants Commit Billions to AI Infrastructure<\/h2>\n<p><strong>Google (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>) and Blackstone (<a href=\"\/stock\/BX\">BX<\/a>)<\/strong> have announced a massive joint venture to launch a new U.S.-based AI cloud company. The project is backed by <strong>$5 billion in equity capital from Blackstone<\/strong> and aims to deliver <strong>500 megawatts of AI computing capacity by 2027<\/strong>.<\/p>\n<p>The venture will be led by <strong>Google veteran Benjamin Treynor Sloss<\/strong>, signaling a major push to dominate the infrastructure layer of the generative AI boom. In a separate move, <strong>Hitachi (<a href=\"\/stock\/HTHIY\">HTHIY<\/a>)<\/strong> unveiled a strategic alliance with <strong>Anthropic<\/strong> to integrate frontier AI models into its &quot;Lumada 3.0&quot; platform.<\/p>\n<p>In the private markets, <strong>SpaceX<\/strong> continues to see its valuation soar toward an expected <strong>$1.75 trillion<\/strong>. According to the Financial Times, <strong>Dan Sundheim\u2019s D1 Capital Partners<\/strong> is positioned to hold a stake worth roughly <strong>$20 billion<\/strong> if the aerospace giant hits its valuation targets.<\/p>\n<h2>Japan GDP Outperforms Amid Inflationary Concerns<\/h2>\n<p><strong>Japan\u2019s economy expanded at an annualized rate of 2.1% in the first quarter<\/strong>, significantly outpacing the <strong>1.7% estimate<\/strong>. The preliminary data showed a <strong>0.5% quarter-on-quarter increase<\/strong>, supported by a <strong>0.3% rise in private consumption<\/strong> and a positive contribution from net exports.<\/p>\n<p>While the GDP data was positive, the <strong>Reserve Bank of Australia (RBA)<\/strong> issued a warning regarding regional inflation. The central bank expressed concern that <strong>higher energy costs<\/strong> could rapidly bleed into consumer prices, potentially forcing a more hawkish monetary stance.<\/p>\n<h2>Putin Signals Stronger Ties with Beijing<\/h2>\n<p>Russian President <strong>Vladimir Putin<\/strong> characterized Russia-China relations as being at an <strong>\u201cunprecedented level\u201d<\/strong> ahead of his upcoming trip to China. Putin emphasized that both nations are prepared to <strong>support each other on sovereignty issues<\/strong>, though he stressed the partnership is focused on peace rather than confrontation.<\/p>\n<p>On the domestic front, the <strong>Trump administration<\/strong> is reportedly planning to allow more <strong>white South African refugees<\/strong> into the United States, according to CNN. This policy shift comes amid a flurry of international activity, including reports of <strong>Russia shooting down a Ukrainian drone<\/strong> bound for Moscow as the conflict in Eastern Europe persists.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways U.S. President Trump has delayed planned strikes on Iran following requests from Saudi Arabia, the UAE, and Qatar, 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