Global financial markets ended mostly higher on Thursday as investors returned to technology stocks, shrugging off renewed military exchanges between the United States and Iran. While geopolitical tensions remained elevated, easing oil prices and renewed optimism surrounding artificial intelligence (AI)-related semiconductor companies helped lift investor sentiment across major markets.
Wall Street led the gains, with technology stocks driving the broader market higher after several sessions of weakness. Investors appeared increasingly confident that the AI investment cycle remains intact despite recent concerns over high valuations and uncertain returns.
The Nasdaq Composite surged 1.3 percent, outperforming the other major US indexes as heavyweight technology shares regained momentum. The positive close reflected renewed demand for AI-linked companies, even as developments in the Middle East continued to dominate geopolitical headlines.
Market participants were encouraged by strong investor interest in South Korean memory chip manufacturer SK hynix, whose planned US listing generated overwhelming demand. The offering is reportedly around seven times oversubscribed, highlighting continued confidence in semiconductor companies at the center of the AI revolution.
Analysts said the robust demand for the listing signals that investors remain willing to back companies expected to benefit from long-term AI growth, despite recent volatility across the technology sector.
Christopher Low, chief economist at FHN Financial, said oil markets have become less vulnerable to supply disruptions originating in the Middle East than in previous decades.
“Part of the story that people are missing is just how much oil production has increased outside of the Gulf since the beginning of war in the Middle East,” Low said.
According to Low, expanding production from regions outside the Gulf has significantly reduced the world’s dependence on traditional Middle Eastern oil exporters, making markets more resilient to regional conflicts.
That changing energy landscape helped explain why investors reacted calmly to another round of military strikes between Washington and Tehran.
International benchmark Brent crude fell 2.2 percent to US$76.30 per barrel after briefly climbing above US$80 a barrel on Wednesday for the first time in two weeks. The decline in oil prices eased concerns about inflationary pressures and potential disruptions to global economic growth.
The latest drop followed renewed hostilities between the United States and Iran. After both countries exchanged attacks on Wednesday, US President Donald Trump declared that any previous ceasefire between Washington and Tehran was “over.” However, he also suggested diplomatic engagement remained possible and indicated that any future military action would likely be brief.
The conflict intensified further on Thursday as Iran launched strikes targeting US assets in Kuwait, Bahrain and Qatar, raising fears of a wider regional confrontation. Despite the escalation, financial markets showed remarkable resilience, with investors largely avoiding panic selling.
Kathleen Brooks, research director at trading group XTB, said markets appear increasingly capable of absorbing geopolitical shocks.
“Although the events of recent days are another sign that the path to a long-term peace will have many twists and turns, the market seems well placed to absorb the current tensions,” Brooks said.
Across Europe, stock market performance was mixed but generally positive.
France’s CAC 40 and Germany’s DAX index both finished higher, supported by gains in technology and industrial shares. London’s FTSE 100, however, underperformed after heavyweight pharmaceutical company AstraZeneca suffered a sharp decline following disappointing clinical trial results.
Shares in AstraZeneca plunged as much as 10 percent during trading after the company’s experimental heart medication failed to meet its primary objectives in a late-stage clinical trial. Although the stock recovered some ground before the closing bell, it still finished down 6.2 percent, weighing heavily on the UK benchmark index.
The setback represented one of the company’s most significant market disappointments in recent years and highlighted the risks associated with pharmaceutical research and development, where even promising treatments can fail to deliver expected outcomes.
Technology stocks, meanwhile, continued to dominate investor attention worldwide.
The anticipated American Depository Receipt (ADR) listing of SK hynix has become one of the year’s most closely watched public offerings. Market observers estimate the company could raise as much as US$28 billion, making it among the largest international listings in recent history.
The exceptional level of investor demand suggests confidence remains strong in companies supplying the advanced memory chips essential for AI data centers and high-performance computing systems.
Shares of SK hynix climbed 5.3 percent in Seoul trading following reports of the offering’s overwhelming subscription levels. Nevertheless, the stock remains below the record high reached last month before technology shares entered a broad correction.
Angus Campbell, market analyst at Trade Nation, said enthusiasm surrounding the listing reflects investors’ continued belief in AI’s long-term growth prospects.
“Interest in SK hynix demonstrates continued investor appetite for AI-related semiconductor companies, which encouraged investors to return to tech stocks despite ongoing geopolitical uncertainty in the Middle East,” Campbell said.
Asian markets also ended mostly higher, although gains were more modest as investors remained cautious about elevated technology valuations.
Seoul’s benchmark index rose 0.6 percent, supported by semiconductor stocks despite remaining more than 20 percent below the record highs reached in June. The market had previously been one of Asia’s strongest performers during the AI-driven rally before concerns over excessive valuations triggered a sharp correction.
Japan’s Nikkei advanced more than one percent, benefiting from strength in technology exporters and improved investor confidence.
Mainland Chinese equities also posted gains, with Shanghai ending higher alongside markets in Singapore, Wellington, Mumbai, Bangkok and Jakarta. Hong Kong was the region’s notable exception, closing lower as investors remained cautious about economic growth prospects and broader market conditions.
Despite Thursday’s recovery, many investors remain mindful of lingering challenges facing global markets.
Questions continue to surround the enormous capital spending required to support AI infrastructure, with some analysts warning that technology companies may need years before these investments generate meaningful financial returns.
At the same time, central banks across major economies continue monitoring inflation, while geopolitical risks remain elevated amid ongoing conflicts in several regions.
Nevertheless, Thursday’s trading session suggested investors are increasingly distinguishing between short-term geopolitical uncertainty and long-term structural investment themes.
The resilience of technology shares indicates that confidence in AI-driven growth remains intact, even after recent market volatility. Strong institutional demand for semiconductor companies further reinforces expectations that AI will continue shaping corporate investment and financial markets over the coming years.
Meanwhile, declining oil prices offered additional reassurance that the broader global economy may avoid another energy-driven inflation shock despite continuing tensions in the Middle East.
For investors, the combination of resilient corporate earnings expectations, improving confidence in AI-related industries, and relatively stable energy markets outweighed concerns about geopolitical developments.
As trading concluded across global markets, Thursday’s performance underscored a familiar pattern seen repeatedly in recent years: while geopolitical events continue to influence short-term market sentiment, investors remain focused on longer-term economic fundamentals and transformative technological trends.
Whether this renewed optimism can be sustained will likely depend on upcoming corporate earnings, developments in the Middle East, and continued evidence that massive investments in artificial intelligence are beginning to translate into sustainable business growth. For now, however, global equity markets appear willing to look beyond geopolitical uncertainty and continue betting on the next phase of the technology-driven expansion.
