Global Markets Rally as U.S.-Iran Diplomatic Talks Resume

Wall Street led the broader recovery, fueled by a sharp rebound in the technology sector. Investors, previously shaken by concerns over potential pullbacks in artificial intelligence spending, appear to be rotating back into growth stocks despite the lingering geopolitical instability. The focus now shifts to Qatar, where diplomatic efforts aim to solidify the truce.

Energy markets tell a more complicated story. Brent and WTI crude prices trended upward on Monday as traders priced in the ongoing risks to transit routes through the Strait of Hormuz. While the diplomatic thaw offers a glimmer of hope for stability, the energy sector remains hyper-sensitive to any disruption in supply. Compounding this uncertainty, the Federal Reserve faces pressure from a robust U.S. labor market, leaving investors to weigh the possibility of further interest rate hikes against the backdrop of cooling inflationary fears.