Oil Prices Rise Amid Stalled US-Iran Talks; AI Stocks Boost Wall Street

Oil prices increased on Tuesday due to stalled peace negotiations between Washington and Tehran, according to RTHK. This development also contributed to gains in stock markets, particularly in AI-related tech equities. Two of Wall Street's main indices reached record highs before slightly retreating by the close. Despite turmoil in the oil market, prices remained below the recent peak of US$100 per barrel. Meanwhile, eurozone inflation rose to 3.2% in May, likely prompting an interest rate hike by the European Central Bank, yet European stocks remained resilient. Market optimism was further supported by announcements from US AI giants. Alphabet, Google's parent company, plans to raise up to US$80 billion to expand its AI infrastructure, with Berkshire Hathaway committing US$10 billion. Jose Torres of Interactive Brokers noted concerns about AI expenses amid uncertain profitability, but confidence in a strong economy is mitigating these worries. Anthropic, known for its Claude chatbot, has filed for an IPO that could value the company at nearly US$1 trillion. Neil Wilson of Saxo Markets highlighted that while geopolitical tensions in Iran are significant, the AI sector continues to drive stock market momentum. Additionally, US job openings data showed a 23-month high in April, indicating strong corporate demand for workers. The S&P 500 rose 0.1% to 7,609, the Dow increased 0.5% to 51,307, and the Nasdaq gained 7 points to 27,093.