Janus Henderson argues that global markets largely looked through Middle East instability in May, as AI-driven earnings momentum and falling oil prices outweighed inflation and growth concerns.
- Global equities extended their rally, led by AI-linked semiconductors and memory-chip manufacturers across the U.S., Taiwan, and South Korea.
- Bond markets remained volatile as yields initially surged on war-driven inflation fears before retreating on optimism around a potential U.S.–Iran agreement reopening the Strait of Hormuz.
- Market leadership began to broaden late in the month, with equal-weight benchmarks and cyclical sectors outperforming after an earlier period dominated by mega-cap AI names.
The key question now is whether the market is entering a healthier broadening cycle — or merely extending an increasingly concentrated AI-driven expansion.
Continue reading this article?
Register for free and get access to Investment Officer International:
- Exclusive for professional investors
- Cancel anytime
- Unlimited access: web, app and newsletters
Registration takes less than 1 minute.
No payment details required
Register for free and get access to Investment Officer Luxembourg:
- Exclusive for professional investors
- Cancel anytime
- Unlimited access: web, app and newsletters
Registration takes less than 1 minute.
No payment details required
