Global Stocks Rise as Oil Prices Drop Below $90
Global stocks rose on Thursday as oil prices dropped below $90 per barrel. The Organisation of the Petroleum Exporting Countries (OPEC) lowered its forecast for world oil demand growth in 2026, outweighing ongoing tensions over Iran.
The price of oil slipped 2% to $87.30, with commercial crude oil inventories posting their largest weekly gain since January 2023. This led traders to scale back bets on a September rate hike by the Federal Reserve, pricing in a 65% probability of holding rates unchanged next month.
A raft of upbeat earnings from AI infrastructure firms boosted technology stocks, with the US broader semiconductor index advancing 2.5%. The Nasdaq outperformed peers, and MSCI's main world stocks index rose 0.20%.
As investors shifted their attention back to Iran, Washington and Tehran traded accusations over a deal to reopen the strategically vital Strait of Hormuz. The US dollar edged higher to its strongest level in nearly two weeks on concerns about the stalemate in Iran.