Global Markets Await US-Iran Signals, AI Stocks Remain Magnet

The deal between the United States and Iran is awaited by the market. (Anadolu Dok)

JAKARTA - Global markets moved cautiously on Monday. Investors weighed two big things at once: the opportunity for a US-Iran deal and a technology stock rally that was still being pulled by the euphoria of artificial intelligence or AI.

Anadolu Agency, quoted on Monday, June 1, reported that market sentiment improved after reports emerged that Washington and Tehran were closer to an agreement to extend the ceasefire and open negotiations on Iran's nuclear program.

According to a report by Axios, US and Iranian negotiators have agreed on a 60-day framework document. It includes an extension of the ceasefire, the opening of Iranian nuclear talks, the reopening of the Strait of Hormuz, and the easing of maritime traffic restrictions related to Iranian ports.

However, the deal is not final. US President Donald Trump has not given final approval. US Vice President JD Vance also said there were still differences on the direction of Iran's nuclear talks.

The uncertainty has kept markets from fully calming down. The Strait of Hormuz is an important route for world oil trade. If this route is disrupted, energy prices could again put pressure on inflation and disrupt the flow of goods.

Brent crude rose 1.3 percent to $92.60 a barrel on Monday. The yield on 10-year U.S. government bonds rose three basis points to 4.47 percent. This increase shows market concerns that high energy prices could keep inflationary pressures going for longer.

The U.S. Dollar Index was up 0.1 percent at 99. Gold prices were down 0.7 percent at $1,451 an ounce.

Beyond the Iran issue, Anadolu Agency also noted that the first round of talks on reviewing the US-Mexico-Canada Agreement or USMCA had been completed. Negotiators discussed automotive issues, steel and aluminum trade, and economic security.

Meanwhile, the International Energy Agency, International Monetary Fund, World Bank, and World Trade Organization warn that the Middle East conflict is still a risk for the global economy, energy markets, and trade flows.

The institutions said that the disruption of shipping that is not immediately normal can increase the risk of security of fuel supplies, market stability, and economic resilience. Moreover, global oil inventories are falling rapidly ahead of the peak of demand in the Northern Hemisphere.

On the other hand, technology stocks are still supporting the market. Dell Technologies recorded strong revenue growth and raised its full-year revenue forecast. Its shares jumped 33 percent on May 29.

On the same day, the Dow Jones Industrial Average rose 0.72 percent, the S&P 500 gained 0.22 percent, and the Nasdaq Composite added 0.21 percent. US stock markets also opened trading Monday in positive territory.

Investors are now waiting for US nonfarm payrolls data to be released Friday. This data is important because it provides the latest picture of the labor market and the impact of AI-driven industrial changes.

In Europe, markets are mixed. The French economy shrank 0.1 percent on a quarterly basis in the first quarter. In Germany, the consumer price index fell 0.2 percent in May, while annual inflation slowed to 2.6 percent from 2.9 percent in April.

The German Ministry of Finance said the six largest economies of the European Union had agreed on a common position to deepen integration and strengthen cooperation in the capital market.

On May 29, Germany's DAX 40 rose 0.05 percent and Italy's FTSE MIB 30 gained 0.42 percent. The UK's FTSE 100 fell 0.16 percent, while France's CAC 40 fell 0.7 percent. European markets opened weaker on Monday.

In Asia, positive sentiment from Wall Street was felt. Reports that Nvidia CEO Jensen Huang will meet with South Korean technology executives this week boosted technology stocks in the country. LG shares rose nearly 30 percent.

South Korea's Kospi jumped 4.5 percent to a record 8,874.16 points. Hong Kong's Hang Seng rose 0.9 percent. Japan's Nikkei 225 gained 0.8 percent to a record 67,231.28 points.

However, China is moving differently. The Shanghai Composite fell 0.1 percent after China's manufacturing purchasing managers' index or PMI weakened to 51.8 in May from 52.2 in April.