Global stocks held onto gains from a record-breaking rally fueled by optimism around artificial intelligence (AI), helping markets recover from an April slump caused by tariff concerns. Volatility persisted in precious metals, with silver reaching a historic high, underscoring investor appetite for both equities and alternative assets.
Global equities steady
The MSCI All Country World Index, one of the broadest measures of global equity performance, remained steady after climbing 1.4% last week to a fresh peak. Analysts attribute the gains to a year-end rally supported by technology sector strength, AI-driven growth expectations, and positive momentum in international markets.
A gauge of Asian shares advanced 0.3%, marking the seventh consecutive day of gains, led by tech stocks and miners. In the United States, equity-index futures edged lower after the S&P 500 closed near its peak on Friday, reflecting investor caution after a strong run.
Precious metals surge
Silver experienced significant volatility after breaking through $80 an ounce for the first time, driven by speculative trading and a persistent mismatch between supply and demand. Gold, meanwhile, eased slightly after reaching a new peak in the previous session, while copper soared over 6% to hit a record on the London Metal Exchange.
Experts say the surge in precious metals reflects a combination of elevated central-bank purchases, inflows into exchange-traded funds (ETFs), and three successive rate cuts by the Federal Reserve, which have increased investor appetite for hedges and safe-haven assets.
Market outlook
From a business and investment perspective, the dual momentum in equities and metals signals a market environment where technology-driven growth and precious metal speculation are simultaneously driving returns. Analysts caution, however, that high volatility in metals and tech shares requires careful monitoring, as sudden shifts in monetary policy, trade tensions, or supply constraints could impact investor sentiment.
As 2026 approaches, market participants are likely to balance AI optimism with risk management, while closely watching developments in metal markets and global equities for potential opportunities and challenges.
