By- Shahzad Ahmad
May 21, 2026 at 11:12 AM (GST)
Global markets bounced back strongly on Thursday as easing fears around the Strait of Hormuz and blockbuster earnings from chip giant Nvidia fueled investor confidence across Asia and Wall Street.
The rally was powered by renewed optimism in the AI sector, improving geopolitical sentiment, and easing concerns over disruptions to global oil supply chains.
Main Highlights
- MSCI Asia-Pacific index jumped 1.2%, ending a four-day losing streak.
- South Korea’s KOSPI surged more than 4% after a suspended strike at Samsung Electronics.
- The S&P 500 climbed 1.1%, while Nasdaq rallied 1.5%.
- Nvidia delivered stronger-than-expected revenue guidance, reinforcing AI growth momentum.
- Three supertankers resumed passage through the Strait of Hormuz, calming oil supply fears.
- Brent crude held above $105 per barrel as markets monitored Middle East tensions.
Nvidia Reignites AI Market Excitement
Investor sentiment improved sharply after Nvidia posted forecast-beating guidance, showing that global demand for AI chips remains extremely strong.
CEO Jensen Huang reassured investors that the company continues to dominate the AI chip market despite rising competition.
Tech analysts described the AI industry as “Nvidia’s world,” with governments and enterprises worldwide still racing to secure advanced AI hardware.
Asian semiconductor stocks rallied in response, helping lift major indexes across the region.
Samsung Strike Suspension Lifts Korean Markets
Shares of Samsung Electronics surged over 6% after the company’s union suspended industrial action following a tentative wage agreement.
The development removed fears of a large-scale strike involving nearly 48,000 workers that could have disrupted global semiconductor supply chains and weighed heavily on South Korea’s economy.
Strait of Hormuz Relief Eases Market Anxiety
Markets also welcomed signs of stability in the Strait of Hormuz after several oil tankers successfully passed through the critical shipping route.
The easing tensions reduced fears of a major disruption in global energy supplies, helping improve overall risk appetite across financial markets.
Although Brent crude remained elevated above $105 per barrel, investors appeared more confident that immediate supply shocks may be avoided.
Japan and Australia Add to Positive Mood
Japan’s Nikkei jumped nearly 2% as export growth remained resilient and manufacturing activity stayed in expansion territory.
Meanwhile, Australian shares climbed 1.5%, supported by stable manufacturing data despite softer services-sector activity.
Fed Still Watching Inflation Carefully
Despite the market rally, investors remain cautious after the Federal Reserve’s latest meeting minutes showed policymakers are still worried about inflation.
The minutes revealed that some officials remain open to additional interest-rate hikes if inflation pressures persist.
Market Outlook
The market rebound highlights how quickly sentiment can improve when:
- AI demand remains strong
- Geopolitical fears ease
- Supply-chain risks decline
- Corporate earnings beat expectations
However, elevated oil prices and inflation concerns mean volatility could remain high as investors continue monitoring central bank policy and Middle East developments.
