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Global Stocks Rally as Oil Falls on Hormuz Talks and Strong AI Earnings

Falling oil on signs of progress to reopen the Strait of Hormuz eased inflation worries and lifted risk appetite, helping markets ride a tech-led earnings rebound.

A man walks in front of an electronic screen displaying Japan's Nikkei stock prices quotation board inside a conference hall in Tokyo, Japan, April 27, 2026. REUTERS/Issei Kato
Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, Aug. 5, 2026. (AP Photo/Ahn Young-joon)
A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI), SK Hynix and Samsung Electronics Co. stock price at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, Aug. 5, 2026. (AP Photo/Ahn Young-joon)
Currency traders pass by a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, Aug. 5, 2026. (AP Photo/Ahn Young-joon)

Overview

  • Global equity indexes climbed Wednesday, with U.S. benchmarks closing at or near record levels and major Asian bourses jumping after renewed buying in tech stocks.
  • Oil slid below about $80 a barrel after mediators signaled progress toward reopening the Strait of Hormuz, which reduced near-term supply risk and relieved inflation pressure for markets.
  • Big tech and AI beneficiaries drove gains as strong quarterly results and upbeat guidance from firms such as Amazon, Microsoft and Palantir renewed investor confidence in growth and profits.
  • Falling oil helped push 10-year government yields lower and trimmed market odds of a September Fed rate increase, a move reinforced by dovish comments from New York Fed President John Williams.
  • Volatility remains high regionally, with South Korea's KOSPI and Pakistan's PSX showing sharp intra‑day swings, and markets will watch confirmation of the Hormuz talks and upcoming central bank moves for signs the rally can be sustained.