U.S. equities posted strong gains for a second consecutive week, supported by signs of de- escalation in the Middle East and a pullback in oil prices that helped improve risk sentiment. Enthusiasm around artificial intelligence also provided a tailwind, with large-cap technology and semiconductor stocks advancing on optimism around compute demand, new model launches and continued infrastructure spending. The Nasdaq Composite led gains, rising 4.68%, while the S&P 500 and Dow Jones Industrial Average advanced 3.56% and 3.04%, respectively. For all the optimism in equity markets, bonds took a more cautious approach to pricing out the impact of the Iran war, with U.S. Treasuries ending the week broadly where they started. Across the Atlantic, the pan-European STOXX Europe 600 rose 3.05% in a holiday-shortened week, with Germany’s DAX up 2.74%, Italy’s FTSE MIB gaining 4.35%, France’s CAC 40 advancing 3.73% and the UK’s FTSE 100 adding 1.57%. Asia rebounded strongly, posting its best week since November 2022, with Japan’s Nikkei 225 surging 7.05% and China’s Hang Seng rising 3.05%. Looking ahead, the calendar is busy — with central bankers gathering for the IMF and World Bank Spring Meetings in Washington, U.S. bank earnings, and Hungary’s closely watched election. Yet the key variable remains geopolitical. Will negotiations in Islamabad around the fragile ceasefire between the U.S. and Iran show that the bottom is in for global risk assets?