US stocks rally as oil hits 10-week low; AI sentiment sours
US equities surged and oil slid after Trump said renewed Iran strikes were unlikely. Banks and analysts are questioning the AI trade.
What we know
Market commentators report US stocks adding about $1.5T, with the S&P 500 up about 2% and the Nasdaq 100 up about 3%. The FT reported oil hit a 10-week low after Trump said US strikes on Iran were 'highly unlikely.' On AI, Citi's strategist said the bank swapped its US overweight for Europe because the AI mood has soured. UBS CEO Sergio Ermotti said investors rightly question the value the AI cycle can create. Goldman's CEO stayed optimistic on data center investment. A market news account relays that chip credit-default swaps widened beyond hyperscalers. This is unconfirmed here. NVDA is back at its August 2025 price while the S&P is up about 20%, per an analyst.
How the story developed
US equities surged and oil slid after Trump said renewed Iran strikes were unlikely. Banks and analysts are questioning the AI trade.
Republicans suffered major midterm defeats, and the aftermath is shaping commentary from CT to Iran. Speculation centers on possible scrutiny of Trump-family crypto ties.
Iran's foreign minister issued a post-midterm statement with a 2-day proposal, Trump said renewed strikes are unlikely if talks progress, and rumors say a weekend attack was cancelled and Hegseth may be removed.
Israel's president gave Eisenkot the first chance to form a government, while Netanyahu reportedly posted a video urging supporters to block any new government.
Israel's president gave Netanyahu rival Gadi Eisenkot the first shot at forming a coalition, with 28 days to do so.
Reports say Trump ordered minor strikes on Iran, his first ordered action since the election, while Iran's president talks of moving beyond 'neither war nor peace'.
A viral, unverified post says Trump announced new US strikes on Iran and that Iran is distributing iodine tablets. It appears in only one source and should be confirmed.
Trump says most NATO allies won't join the US military operation against Iran, while unverified reports cite explosions in Iran and a downed US MQ-9 drone.
The BoE hiked to 4.00% while Chinese bonds hit records. Iran's mine-struck tankers and Trump's threats add geopolitical risk.
Brent fell ~8.7% to $94.62 and US crude settled at $88.12 (-8.3%) as the new Congress is expected to curb the Iran war. Israel meanwhile is on high alert over a possible Iranian strike.
Sources
“Oil prices hit 10-week low after Trump says strikes on Iran 'highly unlikely'”
View post →By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.