Stocks stall as doubts over US‑Iran talks; AI rally returns again

Markets hesitated as doubts emerged over US–Iran negotiations, prompting a pause in equity gains and a rise in risk‑off positioning. Reuters reported that stalled talks and lingering regional tensions weighed on Asian bourses, curbing a broader risk rally.

The story unfolded as negotiators failed to bridge differences on key issues, lifting geopolitical risk premia and making oil prices volatile; at the same time, upbeat results and forecasts from major chip suppliers underpinned renewed buying in AI‑related names. Leading chipmakers and data‑centre suppliers helped offset some of the broader market caution by drawing fresh inflows.

The net effect was a bifurcated market: safe‑haven flows supported gold and sovereign bonds in some sessions, while technology and semiconductor stocks rallied on expectations of sustained AI investment. This tug‑of‑war left headline indices range‑bound and sensitive to the next geopolitical or earnings surprise.

In a wider macro context, uncertainty over the talks compounds existing questions around monetary policy and tariff signaling, limiting investors’ willingness to fully re‑risk portfolios. Corporate earnings and sector‑specific momentum—especially in AI infrastructure—are increasingly driving stock selection within this uneven backdrop.

Market strategists expect continued volatility and sector rotation in the near term. If AI demand metrics and chipmakers’ guidance remain robust, technology could provide the next leg of gains; however, any deterioration in diplomatic progress or a fresh escalation would likely push flows back into havens and pressure cyclical assets. Investors are advised to monitor talk developments and earnings cues closely.