Zylostar Market Wrap – Jun 2, 2026

Global markets pushed higher as optimism surrounding US-Iran negotiations and renewed enthusiasm for AI-driven growth outweighed ongoing geopolitical risks. The S&P 500 extended its rally to an eighth consecutive session, reaching fresh record highs, while technology stocks led gains following positive developments from Nvidia and a major investment announcement involving Alphabet.

In the Middle East, markets remained highly sensitive to headlines. Iran has yet to formally respond to the latest US proposal, with discussions continuing in Tehran. President Trump expressed confidence that an agreement could soon extend the ceasefire framework and help reopen the Strait of Hormuz. However, uncertainty remains elevated after reports that the IRGC targeted a US-linked vessel and Israeli Prime Minister Netanyahu reiterated that military operations in southern Lebanon would continue. Oil prices fluctuated throughout the session, with crude initially rising on geopolitical concerns before easing as hopes for diplomacy improved sentiment.

The AI theme continued to dominate equity markets. Jensen Huang announced that NVIDIA Corporation plans to return at least half of its free cash flow to shareholders while also confirming that Washington has authorized certain chip sales to China. The company also reiterated its commitment to strengthening supply-chain resilience through continued investment in Taiwan. Separately, Berkshire Hathaway announced a $10 billion investment in Alphabet Inc., adding further support to the technology sector.

Geopolitical tensions remained elevated elsewhere as Russian air strikes on Kyiv reportedly injured more than 50 people overnight, while reports suggested the US is discussing increasing nuclear weapon deployments across Europe. These developments helped support demand for the US dollar, with traders positioning for further gains amid ongoing global uncertainty.

On the policy front, the White House expanded tariff relief measures, reducing duties on several categories of industrial and agricultural machinery imported from trade-deal partners. The move was viewed as another step toward easing supply-chain pressures and supporting business investment.

In Asia-Pacific markets, Japanese officials reiterated their readiness to intervene in currency markets if necessary following recent record levels of FX intervention. Meanwhile, an official from the Reserve Bank of Australia noted that long-term inflation expectations have begun to move higher, reinforcing concerns that inflation could remain above target for an extended period.