AI Boom Drives Global Stocks Amid U.S.-Iran Conflict

Global stock markets reached unprecedented peaks between June 1 and June 3, 2026, as an artificial intelligence surge offset geopolitical instability. The S&P 500, Dow Jones Industrial Average, and Nasdaq composite all set all-time records, while Japan's Nikkei 225 surpassed 68,000 for the first time. This rally was spearheaded by Jensen Huang, CEO of Nvidia, whose unveiling of a new AI processor for PCs and endorsement of Marvell Technology—which he suggested could become a trillion-dollar company—sent related tech stocks soaring. Other major movements included Alphabet's plan to raise $80 billion for AI infrastructure and Anthropic's confidential IPO filing.

These gains coincided with a volatile military conflict between the United States and Iran. Hostilities escalated as the U.S. military bombed Iranian sites and conducted strikes on Qeshm Island and near the Strait of Hormuz in response to Iranian drone and missile attacks, including strikes on Kuwait's airport and U.S. bases. While the Tasnim news agency reported that Iran suspended negotiations over Israeli conduct in Lebanon, Donald Trump countered that talks are continuing at a rapid pace to end the three-month war and reopen the Strait of Hormuz.

Economic repercussions included a jump in Brent crude prices toward $98 per barrel and warnings from the OECD that the conflict could spike global inflation. In response, the Japanese government approved a $19 billion supplementary budget to support households. Markets remain tense as investors weigh AI-driven growth against the potential for further shocks and upcoming U.S. Federal Reserve policy decisions under Chairman Kevin Warsh.