Market Summary - US-Iran Peace Hopes Drive Market Rally

Date: 7 May 2026

Author: Kelvin Wong

Key Takeaways

• Global Risk Appetite: A surge in global equities was observed following reports of a potential peace memorandum between the US and Iran, leading to a significant drop in oil prices and easing inflation concerns.
• Tech Sector Performance: The S&P 500 and Nasdaq 100 reached record highs, driven by strong performances in semiconductor stocks, particularly Intel and AMD, following positive earnings and strategic partnerships.
• Currency Movements: The US dollar weakened, while gold prices surged over 3% to exceed $4,700, and the Japanese yen gained strength amid market interventions.

Market Highlights

The S&P 500 closed at a record 7,259.22, with notable contributions from the semiconductor sector. Intel's stock rose by 13% due to partnership news with Apple, while AMD saw a 16.5% increase in after-hours trading.

Gold prices climbed to $4,703/oz, reflecting a shift in safe-haven dynamics as geopolitical tensions eased. The Japanese yen also appreciated by 1.8% against the US dollar, attributed to suspected market interventions.

Macro Themes

• Geopolitical De-escalation: The potential resolution of the US-Iran conflict is expected to alleviate risk premiums in energy markets, with WTI crude prices falling towards $100/bbl.
• AI Semiconductor Supercycle: The tech sector is showing resilience against broader economic concerns, with semiconductor companies leading growth.
• Dollar Weakness: The decline in the US dollar has prompted a capital rotation into gold, highlighting its appeal as an alternative asset.

Global Market Impact

In the last 24 hours, major indices reflected positive trends:

• S&P 500: +1.5% to 7,365
• Nasdaq 100: +2.1% to 28,599
• Russell 2000: +1.5% to 2,886
• DAX: +2.1% to 24,918

Fixed income markets saw the US 30-year Treasury yield drop below 5%, while the 10-year yield remained stable at 4.4%.

Asia Pacific Market Response

Asian stock markets reacted positively, with significant gains in major indices:

• Nikkei 225: +5.4% to 62,720
• KOSPI: +0.2% towards a new record high
• Hang Seng Index: +1.3% to 26,564
• China A50: +0.2% to 15,850

The Australian dollar outperformed its peers, while the Japanese yen stabilized amid intervention fears.

Upcoming Events to Watch

• US Initial Jobless Claims - Expected at 205K
• Eurozone Retail Sales - Expected at -0.3% m/m

Chart of the Day

The USD/JPY is under pressure, with key resistance at 157.30/157.55. A breakdown could lead to further declines towards 154.65 and 154.05.