Flash note UK: political risk and markets

Flash note

Global rate markets are driven by oil price fluctuations while credit and EM debt remain very resilient

Global equity markets rallied strongly in the week ending 8 May 2026, with technology and semiconductors at the centre of the advance. AI infrastructure spending commitments from major hyperscalers fired up chip stocks across the US and North Asia, while cybersecurity names surged on standout earnings. Geopolitical relief around the Strait of Hormuz and a resilient US labour market reinforced the risk-on tone. This weekly strategy note covers key drivers across US, European, and Asian equity markets

Meanwhile, we compare the AI bubble to the internet bubble. Each week, the Syz investment team takes you through the last seven days in seven charts.

Flash note

US equities extended their rally to a sixth consecutive weekly gain, the longest streak since 2024. The S&P 500 advanced 2.3% on the week, while the Nasdaq surged 4.5%, both setting fresh record highs. The Dow lagged at +0.2%. AI infrastructure remained the dominant engine — AMD jumped roughly 20% on the week and the Philadelphia Semiconductor Index added more than 10%, bringing its 2026 gain to 65%. April nonfarm payrolls printed at 115,000 vs. 65,000 expected, with unemployment steady at 4.3%, reinforcing the soft-landing narrative but strengthening hawkish FOMC voices as markets now flirt with bets of a Fed hike later this year.

AI analysis of S&P 500 transcripts shows limited concern about economic slowdown as AI dominates corporate discussions

Higher rates pushed by inflation fears and hawkish central banks, but resilient credit and EM spreads

Meanwhile, nearly half of Google’s quarterly profit driven by mark-to-market gains on private AI investments. Each week, the Syz investment team takes you through the last seven days in seven charts.