AI Boom and War Turbulence Send Global Markets on Wild Ride
This year has been marked by unprecedented market volatility due to the Iran war and an AI boom. Despite a $9 trillion drop in March when oil prices surged to $120 a barrel, global stocks have now surpassed their end-2025 levels by $7 trillion.
The MSCI All-Country World index has jumped nearly 10% since the start of the year, with South Korea's stock market surging by an impressive 100%. Elon Musk's SpaceX has also seen a significant boost in value.
However, not all sectors have performed well. The 'Magnificent Seven' tech giants have underperformed the MSCI world index, and gold has lost its shine, dropping more than 12% in June to register its worst month since October 2008.
Experts are sounding cautionary notes about the market's fragility, with Equity Bank's Charlie Robertson warning that a potential 'peak AI' could be looming. Meanwhile, State Street's Michael Metcalfe identifies the Japanese yen as a key risk point due to its 40-year low and Tokyo's efforts to prop it up.