Global Markets Rise as Oil Prices Slip Below $90 Amid Iran Conflict
Stock markets rose globally on Thursday as oil prices slipped below $90. The New York Stock Exchange saw traders scaling back bets on a September rate hike, with the probability of the Federal Reserve keeping rates unchanged next month now at 65 percent.
The Organisation of the Petroleum Exporting Countries lowered its world oil demand growth forecast for 2026, citing signals of lower demand due to commercial crude oil inventories' largest weekly gain since January 2023. The Organization also mentioned that a stalemate in peace negotiations over Iran weighed on oil prices.
However, upbeat earnings from AI infrastructure firms boosted technology stocks. Mohit Kumar, an economist at Jefferies, said 'Earnings season [for AI infrastructure names] has been strong and shows no signs of slowdown in Capex.' He added that 'The background of high amounts of cash in the system and Fed not hiking [Jefferies view] should continue to support risky assets.'
The US dollar edged higher on concerns about the stalemate in Iran, while the euro benefited from lower oil prices, rising 0.12 percent to $1.1537.