Stock markets can ignore war when technology demand is high
Finance
While global conflicts usually send investors running for safety, the insatiable hunger for artificial intelligence has turned silicon chips into a new kind of financial armor.
In early 2024, Japan's Nikkei 225 index performed a feat that defied traditional logic, surging past 39,000 points to hit a record high despite intense military tensions in the Middle East. Historically, war triggers a sell-off as energy prices spike, but the modern market has found a powerful counterweight in the semiconductor industry. Investors are betting so heavily on the future of AI that technology demand is now capable of decoupling stock performance from geopolitical shocks.