The AI Deal Spree Continues to Push Stocks Higher

Global equities extended their rally Friday, powered once again by optimism surrounding artificial intelligence. A series of high-profile AI partnerships and investment deals fueled momentum, pushing markets to fresh highs across Asia, Europe, and the U.S.

‍

Asian technology shares were out in front as Hitachi Ltd. announced a partnership with OpenAI focused on energy and infrastructure, while Fujitsu Ltd. deepened its collaboration with Nvidia Corp. The AI theme also stretched into the infrastructure space, with Global Infrastructure Partners reported to be in advanced negotiations to acquire Aligned Data Centers in a deal estimated at $40 billion further proof of the massive capital chasing AI-related assets.

‍

In the U.S., S&P 500 futures edged up 0.1%, putting the benchmark index on track for a sixth consecutive gain its longest winning streak since July. The rally has now carried the S&P 500 through 114 sessions without a 5% pullback, underscoring the market’s one-way march toward record levels.

‍

Across the Atlantic, Europe’s Stoxx 600 also extended its record-setting run, supported by strength in mining stocks as copper prices headed toward their best weekly advance since April.

‍

Investor enthusiasm for AI shows little sign of fading. The billions pouring into the sector are being interpreted as a future source of profits, helping extend tech’s market leadership. This bullish sentiment has been strong enough to eclipse concerns over the ongoing U.S. government shutdown, now entering its third day and causingdelays in the release of crucial economic data.

‍

“Volatility across financial markets has been trending lower, partly because the shutdown has delayed key data releases like September’s jobs report,” noted ING strategists Chris Turner and Francesco Pesole. “Instead, investor attention is firmly locked on the AI-fueled rally in megacap tech, which continues to gather pace.”

‍

The latest round of partnerships and deal chatter followed Thursday’s news that a share sale boosted OpenAI’s valuation to $500 billion, adding another spark to the rally. With equities repeatedly breaking records this year, optimism around AI has combined with hopes of monetary policy easing and steady corporate earnings to drive further gains.

‍

While technology stocks dominate headlines, commodities are also making waves. Gold is on track for its seventh straight weekly advance, supported by robust central bank purchases, easing U.S. interest rates, and persistent inflationary pressures.

‍

Interestingly, despite AI’s surge and the strength of semiconductor stocks in 2025, gold miners have outperformed them by a wide margin. An MSCI index of global gold equities has jumped about 135% this year, setting up its largest-ever outperformance against MSCI’s semiconductor benchmark, which is up 40%.

‍

Elsewhere, oil prices headed for their steepest weekly drop since late June, ahead of an OPEC+ meeting expected to bring additional supply back online. Meanwhile, the U.S. dollar and Treasuries held steady, with the 10-year Treasury yield closing at 4.09%.

‍

With AI enthusiasm showing no signs of cooling, the question now is how sustainable the surge really is. Investors are increasingly debating whether valuations, driven by AI expectations, are running too far ahead of actual earnings potential.

‍

“The market may soon begin questioning whether current valuations can truly be justified,” said Wolf von Rotberg, equity strategist at Bank J. Safra Sarasin. “From here, further upside is likely to be more gradual, and the risk of a pullback is fairly high.”

‍

This week’s market action highlights the powerful influence of AI on global equities, from megacap tech partnerships to massive infrastructure deals. While excitement around AI continues to fuel record highs, caution is building around valuations, particularly given that revenue streams from AI services remain in their early stages.

‍

For now, investors are choosing to ride the momentum, but many strategists caution that selectivity will matter more as the rally matures. Whether AI delivers on its lofty promises or risks becoming another overheated bubble will be the defining question for markets moving into the next phase.

‍