22/05/2026
Fueled by growing hopes for a peace deal between the United States and Iran and sustained enthusiasm for artificial intelligence, global equities have moved higher. The S&P 500 is on track to secure its best weekly gain since 2023 and notch an eighth consecutive weekly rise, marking its longest weekly winning streak in recent years.
Commodities, foreign exchange and bond markets showed divergent trends this week. U.S. benchmark crude futures edged up 0.2%. Brent crude rebounded above $105 per barrel but is still set to post a weekly loss. U.S. Treasury prices steadied after several days of volatility.
Despite lingering market concerns that potential Middle Eastern energy supply disruptions could stoke inflation and weigh on sentiment, U.S. stocks are poised to end the week on a strong footing. Both the U.S. and Iran have no intention of escalating conflicts, and market optimism over expanding profitability driven by artificial intelligence has underpinned equity gains. Conflicting headlines regarding peace negotiations have failed to reverse the overall positive market trend.
“In the current environment of heightened uncertainty and rising inflation expectations, sectors and individual companies that can clearly demonstrate AI-driven efficiency and profitability improvements will be rewarded by the market,” said Geoff Yu, Senior Macro Strategist at Bank of New York. “Firms that effectively implement AI to boost operational efficiency and earnings growth will continue to attract capital inflows, driving upgrades in both valuations and fundamentals.”
In other markets, gold prices remained largely flat around $4,525 per ounce. The U.S. dollar strengthened against all major currencies. The Japanese yen hovered near 159 against the U.S. dollar, hitting its lowest level since April 30, as Japan’s key inflation indicators cooled more sharply than market expectations.
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