As the second quarter draws to a close, global equity markets are celebrating their strongest performance in six years, fueled largely by an unrelenting surge in artificial intelligence stocks. Despite geopolitical tensions, indices like the Nasdaq and the MSCI All-World have hit impressive highs, with investors showing a relentless appetite for equities. This bullish momentum persists even in the face of shifting monetary policies, as market participants increasingly pivot their expectations from interest rate cuts to potential hikes, driven by the surprising resilience of the U.S. economy.

In contrast, the energy sector has faced significant pressure, with Brent crude enduring its steepest quarterly decline since 2020 as concerns over the U.S.-Iran conflict ease. This cooling of regional tensions has allowed for a gradual reopening of the Strait of Hormuz, effectively tempering oil prices. Meanwhile, the U.S. dollar has asserted its dominance, contributing to a difficult quarter for gold and the Japanese yen, the latter of which has hit a four-decade low. As central bankers convene in Sintra to discuss the path forward, all eyes remain on upcoming U.S. economic data, which analysts believe could provide a catalyst for further market volatility.