Weekly Global Markets Watch

Global markets showed a split picture last week: equities improved as investors priced a lower risk of prolonged Strait of Hormuz disruption, while long-dated bonds remained under pressure from inflation, fiscal and debt-supply concerns. European equities led gains, Brent crude fell sharply on hopes of a possible US–Iran interim deal, and aluminum stood out among commodities as supply-chain concerns kept prices supported.

The S&P 500 advanced modestly, but sector performance showed a defensive tilt rather than broad risk appetite. Utilities, Healthcare and Real Estate led the market as investors favored stable cash flows and defensive earnings, while Energy lagged after oil prices dropped and Communication Services weakened amid profit-taking in expensive, AI-linked and ad-sensitive names.

This week's main chart highlights the extraordinary strength of global momentum stocks, with AI-related winners driving one of the strongest periods of outperformance on record versus the broader MSCI ACWI universe. The rally shows how dominant the AI trade has become, but also points to growing concentration risk if inflation, higher rates or weaker earnings eventually challenge the momentum story.