Oil prices and AI developments drive global market volatility

Global markets are navigating volatility driven by rising oil prices and advancements in artificial intelligence. Brent crude has risen to 102 USD per barrel due to supply disruptions in the Middle East, causing investor caution regarding macroeconomic risks.

In the technology sector, Meta saw an 11% stock increase following the introduction of Muse, an AI agent capable of performing tasks on behalf of users. Meanwhile, Chinese internet firms Tencent and Alibaba maintained earnings, with Alibaba unveiling a new AI chip and data center expansion plans.

JP Morgan analysts have expressed unprecedented uncertainty regarding oil price forecasting. The bank noted that several previously established ‘economic red lines’—including oil prices exceeding 100 dollars per barrel and US 10-year bond yields surpassing 5%—have been breached. Analysts stated, “For the first time since the start of the Iranian conflict, we do not have a baseline. We simply do not know how to model the end goal,” reflecting market nervousness over the conflict's trajectory.