By Boluwatife Oshadiya
| May 25, 2026
Key Points
- Global equities traded higher as AI-linked technology stocks extended gains across major markets
- Wall Street closed firmer after easing oil prices improved inflation expectations
- Nigerian equities snapped their bullish run amid profit-taking activities
Main Story
Global equity markets opened the week on a positive note as investor appetite for artificial intelligence and technology-related stocks continued to drive gains across Wall Street and Asian exchanges.
Improved geopolitical sentiment also supported risk assets after fresh signals of diplomatic engagement between the United States and Iran reduced concerns about prolonged tensions in the Middle East and potential supply disruptions in global energy markets.
According to First National Bank (FNB), global markets closed the previous session moderately stronger following a sharp decline in oil prices, which eased fears of sustained energy-driven inflationary pressures.
On Wall Street, the Dow Jones Industrial Average rose 0.58% on Friday, while the S&P 500 gained 0.37% and the Nasdaq Composite added 0.19% as investors balanced resilient corporate earnings with improving inflation expectations.
European markets also traded higher, with the FTSE 100 advancing 0.22% and the Euro Stoxx 50 climbing 0.99%, supported by cyclical stocks and weaker energy price expectations.
Asian markets extended the rally on Monday, led by Japan’s Nikkei 225, which surged 3.18%. Hong Kong’s Hang Seng Index gained 0.86%, while Australia’s ASX 200 rose 0.45%.
Technology and semiconductor stocks remained the key drivers of market momentum as investors rotated into growth sectors amid expectations that easing oil prices could reduce pressure on central banks to maintain aggressive interest rate policies.
In Africa, the Johannesburg Stock Exchange closed lower on Friday, weighed down by weakness in mining and resource stocks. The JSE All Share Index declined 0.73%, while the Top 40 Index fell 0.85%.
Meanwhile, Nigeria’s equities market ended its recent bullish streak as the Nigerian Exchange All-Share Index declined by 0.25% amid profit-taking in selected counters.
Market capitalisation dipped slightly from N160.44 trillion to N160.08 trillion. However, trading activity remained strong, particularly in large-cap banking stocks and fundamentally resilient counters.
Among the week’s top gainers were ABCTRANS, ACADEMY, UPL, INTENEGINS, and LEARNAFRCA, while SOVRENINS, TRANSEXPR, CAP, BERGER, and RTBRISCOE ranked among the biggest losers.
The Issues
Global markets continue to remain highly sensitive to geopolitical developments, interest rate expectations, and the trajectory of artificial intelligence investments.
The surge in AI-linked stocks reflects growing investor confidence in technology companies expected to benefit from increased global spending on AI infrastructure and semiconductor capacity. However, analysts continue to warn about elevated valuations in some growth sectors.
In Nigeria, profit-taking activities suggest investors are locking in gains following recent market rallies, particularly in sectors that have significantly outperformed broader market indices in recent months.
What’s Being Said
“Concerns about sustained energy-driven inflationary pressures have been reduced,” First National Bank said in its morning market brief.
Market analysts also noted that lower oil prices have helped strengthen investor confidence that central banks may adopt less aggressive monetary tightening positions later in the year.
What’s Next
- Investors are expected to monitor further developments in US-Iran negotiations this week
- Markets will also watch for fresh US inflation and labour market data for clues on future Federal Reserve policy direction
- Nigerian investors are likely to continue tracking banking sector earnings and fixed-income market yields
The Bottom Line: Global equities are increasingly being driven by optimism around artificial intelligence and easing inflation concerns. However, market momentum remains vulnerable to geopolitical risks and the direction of global monetary policy in the second half of the year.
