Oil Prices

Global markets showed a sharp split Thursday as U.S. Tech stocks surged to new records while European and Asian equities slipped on escalating Middle East tensions. The S&P 500 and Nasdaq Composite both reached fresh intraday highs, driven by a relentless rally in semiconductor and large-cap technology shares, even as oil prices jumped and the International Energy Agency warned of the worst energy security threat in decades.

In Europe, the Stoxx 600 opened 0.4% lower as Brent crude climbed 2.2% to $104.17 per barrel, reflecting growing anxiety over disrupted energy flows. IEA chief Fatih Birol, speaking at CNBC’s CONVERGE LIVE in Singapore, told Steve Sedgwick the world faces the “biggest energy security threat in history,” citing the Iran conflict as a key factor threatening Europe’s jet fuel supplies. His remarks came just hours after U.S. Forces reportedly intercepted at least three Iranian oil tankers in Asian waters, a move that rattled markets across the Pacific.

Asia’s reaction was mixed but increasingly fragile. Japan’s Nikkei 225 briefly touched an all-time intraday high of 60,013.98 before closing 0.75% lower at 59,140.23, erasing early gains on profit-taking. South Korea’s Kospi, however, held firm, ending 0.90% higher at 6,475.81 after reaching an intraday peak of 6,538.72, buoyed by stronger-than-expected first-quarter GDP growth. Meanwhile, Australia’s S&P/ASX 200 fell 0.57%, Hong Kong’s Hang Seng dropped 0.92%, and mainland China’s CSI 300 slipped 0.28%, underscoring regional unease despite isolated pockets of strength.

In stark contrast, U.S. Technology sectors extended their winning streaks with little sign of pause. The XLK ETF, which tracks large-cap tech, was poised for a historic 16th consecutive day of gains, while the SOXX semiconductor ETF continued its tenth straight day of intraday record highs. Dozens of individual tech and industrial names posted fresh intraday peaks, including Advanced Micro Devices, Cisco, Dell, Texas Instruments, and Quanta Services, alongside industrial stalwarts like Cummins, Eaton, and Nucor. The breadth of the advance suggested deep institutional conviction in the tech rally, even as geopolitical risks mounted elsewhere.

For more on this story, see Trump Says U.S.-Iran Deal Imminent as Stocks Rise, Dow Up 270 Points.

The divergence highlights a growing market bifurcation: investors are rewarding U.S. Tech resilience and earnings momentum while penalizing exposure to energy volatility and geopolitical flashpoints. This dynamic echoes patterns seen during the 2022 energy shock, when European markets slumped amid Russian supply fears while U.S. Tech benefited from remote perform acceleration and semiconductor demand. Today, the trigger is different — Middle East instability rather than Eastern European conflict — but the outcome is familiar: capital flows toward perceived safety and innovation, away from supply-chain fragility.

Still, the sustainability of the U.S. Tech advance remains uncertain if oil prices stay elevated. Higher energy costs could eventually filter into inflation expectations, pressuring consumer spending and prompting central banks to maintain restrictive policies longer than markets currently price in. For now, however, the dichotomy holds: Wall Street’s tech champions are racing ahead, while global markets brace for a harder winter.

Why did U.S. Tech stocks keep rising while global markets fell?

U.S. Tech benefited from strong corporate earnings, investor momentum in semiconductors and large-cap tech, and relative insulation from direct energy supply risks tied to the Iran conflict, unlike European and Asian markets more exposed to oil price swings.

What does the IEA’s warning mean for energy markets?

The International Energy Agency’s head said the world faces the “biggest energy security threat in history,” citing risks to jet fuel supplies in Europe due to the Iran conflict, which contributed to rising Brent crude prices above $104 per barrel.