{"id":62646,"date":"2026-06-02T20:38:19","date_gmt":"2026-06-03T00:38:19","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-hit-record-highs-amid-ai-surge-despite-escalating-u-s-iran-conflict-and-oil-price-spike\/62646\/"},"modified":"2026-06-02T20:38:19","modified_gmt":"2026-06-03T00:38:19","slug":"global-markets-hit-record-highs-amid-ai-surge-despite-escalating-u-s-iran-conflict-and-oil-price-spike","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-hit-record-highs-amid-ai-surge-despite-escalating-u-s-iran-conflict-and-oil-price-spike\/62646\/","title":{"rendered":"Global Markets Hit Record Highs Amid AI Surge Despite Escalating U.S.-Iran Conflict and Oil Price Spike"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Global equities reached new record highs<\/strong> as relentless investor demand for <strong>AI-related tech and chipmakers<\/strong> outweighed fears of a widening Middle East conflict.<\/li>\n<li><strong>U.S. Crude futures surged toward $95 per barrel<\/strong> following reports of <strong>Iranian IRGC missile strikes<\/strong> targeting U.S. military bases in Kuwait and the Fifth Fleet headquarters in Bahrain.<\/li>\n<li><strong>Bitcoin (<a href=\"\/stock\/BTC\">BTC<\/a>) and Ether (<a href=\"\/stock\/ETH\">ETH<\/a>) plummeted<\/strong> to multi-month lows, with Bitcoin hitting <strong>$66,123.36<\/strong> as risk-off sentiment permeated the cryptocurrency sector.<\/li>\n<li><strong>Strong U.S. labor data<\/strong>, showing a two-year high in job openings, has reinforced expectations that the <strong>Federal Reserve will maintain higher interest rates<\/strong> for a longer duration.<\/li>\n<li><strong>Japan\u2019s Nikkei 225 (<a href=\"\/stock\/NKY\">NKY<\/a>) surged 1.3% to 67,575.18<\/strong>, even as the government approved a <strong>$19 billion supplementary budget<\/strong> to subsidize soaring energy costs.<\/li>\n<\/ul>\n<h2>Geopolitical Turmoil Drives Oil Toward $100<\/h2>\n<p>Global energy markets are on edge as <strong>Iran\u2019s Islamic Revolutionary Guard Corps (IRGC)<\/strong> confirmed launching &quot;precise and concentrated missile strikes&quot; against U.S. military installations. While <strong>U.S. Central Command (CENTCOM)<\/strong> reported that the attacks failed to reach their targets or were intercepted, <strong>West Texas Intermediate (WTI)<\/strong> crude surged by over <strong>$2.00<\/strong> in early Asia trade.<\/p>\n<p>Analysts at <strong>TD Securities<\/strong> warned that prolonged disruptions in the <strong>Strait of Hormuz<\/strong> could see <strong>Brent crude average $104<\/strong> in the second half of the year. In a worst-case scenario involving regional supply shortages, prices could potentially spike <strong>above $150 per barrel<\/strong>. The escalation follows a clarification from the IRGC that the strikes were retaliation for a U.S. attack on a communications tower on <strong>Qeshm Island<\/strong>.<\/p>\n<h2>Tech Rally Defies Macro Headwinds<\/h2>\n<p>Despite the geopolitical &quot;powder keg,&quot; global stocks continued their climb to <strong>record-breaking levels<\/strong>. The rally is being fueled by an aggressive rotation into <strong>AI-related companies<\/strong> and semiconductor giants. Investors appear to be prioritizing the long-term growth potential of artificial intelligence over immediate concerns regarding <strong>elevated oil prices<\/strong> and inflationary risks.<\/p>\n<p>In Asia, the <strong>Nikkei 225 (<a href=\"\/stock\/NKY\">NKY<\/a>)<\/strong> led gains, closing up <strong>1.3% at 67,575.18<\/strong>, while the <strong>TOPIX<\/strong> index rose <strong>1.1%<\/strong>. However, the Japanese bond market felt the pressure of rising global yields, with the <strong>10-year JGB yield<\/strong> advancing to <strong>2.595%<\/strong> and the <strong>2-year yield<\/strong> reaching <strong>1.395%<\/strong>.<\/p>\n<h2>Crypto and Gold React to &quot;Higher for Longer&quot; Rates<\/h2>\n<p>The cryptocurrency market faced a severe liquidation event, with <strong>Bitcoin (<a href=\"\/stock\/BTC\">BTC<\/a>)<\/strong> sliding to a two-month low. <strong>Ether (<a href=\"\/stock\/ETH\">ETH<\/a>)<\/strong> followed suit, dropping to a three-month low of <strong>$1,837.93<\/strong>. The sell-off coincides with a broader &quot;risk-off&quot; move in digital assets as traders weigh the impact of persistent inflation and high borrowing costs.<\/p>\n<p><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold<\/a><\/strong> pared its earlier gains after <strong>U.S. jobs data<\/strong> revealed a surprise increase in job openings and a decline in layoffs. This robust labor market performance has solidified the narrative that the <strong>Federal Reserve<\/strong> has little room to cut rates in the near term. Analysts suggest gold will remain <strong>range-bound with a downside bias<\/strong> as higher-rate expectations counteract its appeal as a geopolitical hedge.<\/p>\n<h2>Regional Economic Developments<\/h2>\n<p>In Australia, the <strong>Australian Dollar (<a href=\"\/stock\/AUD\">AUD<\/a>)<\/strong> is under pressure as traders anticipate a potential fall following the release of <strong>1Q GDP data<\/strong>. Meanwhile, the <strong>Japanese government<\/strong> is taking fiscal action to shield the economy, approving a <strong>$19 billion budget<\/strong> to mitigate the impact of surging fuel and utility costs on households and businesses.<\/p>\n<p>In the corporate world, country music legend <strong>Garth Brooks<\/strong> is reportedly exploring the sale of his music catalog. The deal, which is being monitored by major private equity and music publishing firms, is targeting a valuation of approximately <strong>$2 billion<\/strong>. Additionally, <strong>Indonesia<\/strong> has moved to enforce strict social media age limits, forcing platforms to implement new &quot;gatekeeping&quot; measures for minors.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Global equities reached new record highs as relentless investor demand for AI-related tech and chipmakers outweighed fears of 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