Global Stock Markets Soar to Record Highs as AI Sector Concerns Ease
Stock markets across Asia and Europe climbed to unprecedented levels on Wednesday, February 25, as investor anxieties surrounding the artificial intelligence sector diminished and encouraging corporate updates lifted market sentiment. Exchanges in Seoul, Tokyo, London, and Paris each surpassed their previous intraday records, propelled by robust gains in technology stocks and strong earnings reports from key companies.
Analysts Point to Cooling AI Fears
Financial analysts noted that the widespread rally reflected a significant cooling of fears that the AI sector might be overvalued and could potentially disrupt multiple industries. Global equities gained momentum as the apocalyptic AI narrative takes a small step back, observed Matt Britzman, a senior equity analyst at Hargreaves Lansdown. Technology shares advanced notably after rebounding on Wall Street the previous day, with investor sentiment improving following a presentation by AI firm Anthropic.
Anthropic's presentation highlighted the compatibility of its technology with existing systems, which helped to calm market jitters that had been exacerbated over the weekend. A report by Citrini Research had warned that sectors ranging from finance to food delivery could face substantial risks from emerging AI tools, adding to earlier volatility in technology stocks.
Attention Turns to Nvidia Earnings
Market attention later on Wednesday was expected to shift toward earnings from chip giant Nvidia, which analysts say could significantly influence global markets. Put simply, meeting earnings expectations is unlikely to be enough to drive the stock higher, especially if conservative guidance reinforces some traders' fears that demand for AI capital expenditure may be downshifting, cautioned City Index analyst Matt Weller.
Asian Markets Show Strong Performance
In Asia, gains were supported by a strong lead from Wall Street and optimism following a US Supreme Court ruling that struck down a broad set of President Donald Trump's tariffs. South Korea's Kospi index crossed the 6,000-point mark for the first time, led by semiconductor heavyweights Samsung and SK hynix. The benchmark has surged more than 40 percent this year after a strong rally in 2025.
Tokyo's main index rose more than two percent to reach a new peak, with technology companies Advantest and Tokyo Electron among the top performers. In Europe, HSBC shares jumped around six percent by midday trading after the banking giant reported better-than-expected earnings for 2025.
Currency and Commodity Movements
Meanwhile, the Japanese yen weakened further against the dollar following reports that Prime Minister Sanae Takaichi expressed concern to Bank of Japan Governor Kazuo Ueda about further interest rate hikes. Oil prices also edged higher after Iran dismissed US allegations regarding its missile programme as big lies. In his State of the Union address on Tuesday, President Trump accused Tehran of pursuing sinister nuclear ambitions as Washington increased military deployments in the Gulf region.
US and Iranian officials are scheduled to hold a third round of talks on Thursday in Geneva as part of ongoing efforts to reach a diplomatic resolution. The combination of easing AI concerns and positive corporate developments has created a favorable environment for global stock markets, driving them to new record highs.
