Global Equities Rally as Easing Crude Prices and AI Growth Offset Middle East Tensions

European and Asian markets gain as oil prices ease and Nvidia’s China approval boosts AI stocks, while investors await the Federal Reserve’s interest rate "dot plot."

By: AXL Media

Published: Mar 18, 2026, 9:55 AM EDT

Market Relief as Energy Prices Recede

European shares, led by the STOXX 600 with a 0.6 percent gain, rose for a third consecutive session following a cooldown in the energy sector. Brent crude futures slipped to approximately $103 per barrel after Iraqi and Kurdish authorities reached a breakthrough agreement to resume oil exports through Turkey. This development provided much needed liquidity to a market strained by the ongoing conflict in the Middle East, which has seen the Strait of Hormuz largely closed and direct strikes on regional oil infrastructure.

The AI Tailwinds and Semiconductor Strength

Risk appetite was further bolstered by significant developments in the technology sector. Nvidia shares received a boost following reports that the company secured approval to sell its second most powerful AI chips in the Chinese market. This news, coupled with CEO Jensen Huang’s projection that AI chip revenue could hit $1 trillion by 2027, has revitalized growth stocks. Market participants are also positioning for strong results from Micron Technology, looking for signs that the semiconductor industry is successfully navigating persistent global chip shortages.

Federal Reserve and the "Dot Plot" Countdown

The primary focal point for global finance is the Federal Reserve’s policy decision scheduled for later Wednesday. While the central bank is expected to hold rates steady, the release of the "dot plot"—a chart showing where individual officials expect interest rates to be in the future—is of paramount importance. Analysts suggest there is a growing risk that the Fed may shift to a more hawkish stance, potentially signaling zero rate cuts for the remainder of 2026 if the recent oil shock is perceived as a driver of long term inflation.