Stocks climb as oil slides, AI buzz returns
LONDON - Stock markets advanced Tuesday as oil prices fell further on speculation the United States and Iran could make progress on talks to end the Mideast war this week, with enthusiasm about Meta’s new AI agent fanning a tech rally.
Stock markets experienced a positive trend on Tuesday as oil prices declined further, with the Brent international crude benchmark dropping below $100 a barrel. The decline was fueled by speculation that the United States and Iran might make progress in talks to end the Mideast war. Additionally, enthusiasm surrounding Meta's new AI agent, Muse, fueled a tech rally.
President Donald Trump and Iranian President Masoud Pezeshkian were reportedly set to meet at the UN General Assembly in New York to discuss potential progress in the ongoing conflict. The possibility of Saudi Arabia resuming oil flows through its East-West pipeline also contributed to the downward pressure on oil prices.
The bullish sentiment in the technology sector was evident as Wall Street indices opened higher following the Nasdaq hitting an all-time closing high on Monday. Stocks were broadly higher in Europe after rising in Asia. Meta's free AI agent Muse gained significant attention after being downloaded more frequently than any other application following its release this month.
Kathleen Brooks, a research director at XTB, suggested that widespread adoption of Muse could boost demand for other AI tools, potentially benefiting the AI sector after a challenging period.
Alibaba unveiled China's most powerful AI chip at its annual Apsara Conference, highlighting the company's commitment to artificial intelligence. The firm, which operates some of China's largest online shopping platforms, including Taobao, has invested billions of dollars in AI development.
Traders are closely monitoring the upcoming summit between US President Donald Trump and Chinese President Xi Jinping, which is expected to focus on trade between the world's two largest economies. A truce in the US-China trade war remains in place, but an agreement is yet to be reached. Trade and artificial intelligence were discussed during a meeting between US and Chinese economic officials in New York on Sunday, as both nations strive for technological supremacy.
AI's growing influence on society, jobs, and cybersecurity will be a significant topic at the UN General Assembly, where leaders are expected to discuss an international framework. However, US President Donald Trump has expressed skepticism about slowing down the development of this technology.
Written by urgent.news from Bangkok Post Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
