By George Prior, the deVere Group's spokesperson
Edited and adapted by Korea IT Times
London—Global equity markets are continuing to rise despite heightened tensions between the US and Iran, as investors place greater weight on corporate earnings, liquidity and long-term growth themes, particularly in artificial intelligence and technology.
The assessment from deVere Group chief executive Nigel Green comes as the US and Iran remain in a tense standoff over the Strait of Hormuz. Although the ceasefire has reduced immediate fears of escalation, disruption risks around one of the world’s most important energy shipping routes continue to affect oil and inflation expectations.
Wall Street moved further into record territory this week. The S&P 500 closed at a fresh all-time high, rising about 1 percent, while the Nasdaq gained roughly 1.6 percent to set another record. The Dow Jones Industrial Average added more than 300 points.
The rally was not limited to the US. Europe’s STOXX 600 climbed to its highest level in months, Germany’s DAX remained near record levels, and France’s CAC 40 advanced. In the Asia-Pacific region, Japan’s Nikkei 225 stayed close to multi-decade highs, while India’s benchmark indices continued to move higher.
“Markets are seeing past the war headlines and focusing on earnings, liquidity, and long-term structural growth. Geopolitics matters, but it’s not the sole driver of capital allocation,” Green said.
Corporate earnings have helped support the broader risk-on mood. Tesla reported stronger-than-expected quarterly results, helped by continued investment in AI computing, battery materials, autonomous systems and robotaxi development. For investors, the results reinforced the view that companies exposed to next-generation technologies remain central to global equity market momentum.
The shift is also visible in global capital flows. Taiwan’s stock market has overtaken the UK in total market capitalisation, reaching about $4.1 trillion, supported by the strength of its semiconductor sector. The UK market, by contrast, remains closer to levels seen more than a decade ago, reflecting its lower exposure to high-growth technology sectors.
Taiwan Semiconductor Manufacturing Company remains a central part of the global AI supply chain, with demand from hyperscalers, chip designers and advanced computing companies continuing to support investor interest. Foreign inflows into Taiwanese equities have accelerated in recent weeks, putting the market on track for one of its strongest months on record.
Risks remain significant. Any renewed disruption in the Strait of Hormuz could lift oil prices, feed into inflation and affect central bank policy decisions. Global supply chains also remain exposed to restrictions or delays in key shipping routes.
“Geopolitical developments will continue to create volatility, particularly in energy markets. Investors must factor in inflation and stagflation risks and potential policy responses. Ignoring these elements would be complacent,” Green said.
The broader market signal, however, is that investors are continuing to allocate capital toward sectors and regions tied to AI, semiconductors, advanced manufacturing and digital infrastructure. While geopolitical risk remains a source of volatility, equity markets are currently being driven more by structural growth expectations than by short-term conflict headlines.
