According to research by Bitget Research, global equities continued to advance this week, led by technology and semiconductor stocks as investors reposition toward growth sectors amid improving macroeconomic conditions.
Ryan Lee, Chief Analyst at Bitget Research, said recent market movements signal a notable shift in investor sentiment as geopolitical and inflation risks begin to moderate.
“Markets are increasingly repricing both geopolitical and inflation-related risks simultaneously. The combination of easing oil prices and continued AI-driven earnings strength is creating a more supportive backdrop for risk assets globally,” said Lee.
Japan’s benchmark Nikkei 225 surged above 62,000 following its holiday reopening, with semiconductor and technology shares leading gains amid robust earnings momentum and sustained AI-related demand.
The decline in oil prices has further strengthened investor confidence by easing inflation concerns and improving expectations around global liquidity conditions and central bank policy. For energy-importing economies such as Japan, lower crude prices are helping reduce cost pressures and improve broader economic sentiment.
Research also points to a significant rotation back into growth-oriented sectors. Investors are increasingly allocating capital toward technology and higher-beta equities, while traditionally defensive sectors such as energy and materials have underperformed. The shift indicates improving confidence in broader market stability as volatility across commodities and macro markets moderates.
At the same time, AI-linked stocks continue to dominate equity market performance globally. The S&P 500 has gained approximately 5.7% year-to-date, with a concentrated group of major technology companies accounting for the majority of those gains.
Companies such as NVIDIA, AMD, and Broadcom continue to drive momentum as global demand for AI infrastructure, compute capacity, and semiconductor innovation accelerates.“AI infrastructure and chipmakers remain the primary engines behind current equity market performance. Capital continues to flow toward companies with strong earnings visibility and long-term exposure to compute demand,” Lee added.
Despite strong headline gains, broader market participation remains uneven, with most stocks still lagging behind the dominant AI sector. Analysts note that while some capital rotation into energy and financials has emerged, the majority of liquidity continues to favor AI-linked equities.
In digital asset markets, the current macro environment is also proving constructive. Historically, periods of declining oil prices and easing inflation expectations have supported stronger flows into cryptocurrencies and other growth-oriented assets as liquidity conditions improve.
The latest rally across both equities and crypto markets reflects a broader resurgence in investor appetite for risk-sensitive assets, underpinned by expectations of improving liquidity and continued technological innovation.
