Global stock markets are largely overlooking ongoing geopolitical tensions, with major indices registering record highs, according to Nigel Green, CEO of deVere Group. The deVere Group is one of the world’s largest independent financial advisory organisations, offering clients guidance on investments, pensions, and wealth management across various global markets. Green asserts that investors should similarly look beyond headlines to grow and preserve their investments, despite the US and Iran remaining locked in a battle for control over the Strait of Hormuz.
Wall Street recently pushed further into uncharted territory, with the S&P 500 closing at a fresh all-time high and the Nasdaq setting another record. Strength was also evident across Europe, where the STOXX 600 climbed to its highest level in months, and in Asia-Pacific, with Japan’s Nikkei 225 near multi-decade highs. Green notes that markets are primarily focusing on earnings, liquidity, and long-term structural growth. While geopolitical developments in the Strait of Hormuz still carry major implications for oil supply and inflation, equities are advancing due to a compelling corporate earnings backdrop.
Driving this sentiment are strong results from companies like Tesla, which reported better-than-expected quarterly figures, bolstered by expanding investment into AI compute, battery materials, and autonomous systems. This highlights a powerful re-rating of global equities, with capital moving decisively towards companies at the centre of next-generation technologies. This shift is clearly seen in Taiwan’s stock market, which has surpassed the UK in total market capitalisation, reaching approximately $4.1 trillion, largely underpinned by its dominance in semiconductor supply chains integral to the global AI ecosystem.
Green cautions that risks linked to the Middle East remain material, potentially creating volatility, particularly in energy markets, and feeding into inflation and stagflation concerns. However, he concludes that global markets are advancing because underlying growth drivers, particularly AI and technology, are powerful and accelerating. Investors who recognise this and position early are likely to benefit most from the opportunities being created across multiple sectors and regions.
