Markets steady as U.S.-Iran clashes test ceasefire; AI-linked chip stocks extend weekly surge

Global markets were mixed on Friday, May 8, 2026, as renewed U.S.-Iran military exchanges in the Gulf tested a ceasefire that U.S. President Donald Trump said remained in effect. Oil prices ticked higher and settled around $101 a barrel, while European futures were volatile.

Asia: small daily moves, strong weekly gains

Most Asian markets posted modest losses on the day but were set for solid weekly gains, led by South Korea. The KOSPI was on track for a 13% weekly rise, its best since 2008, supported by strong performances from chipmakers Samsung Electronics and SK Hynix as investors focused on the AI-driven boom and reports of a severe shortage of memory chips.

Corporate and political signals

In Japan, Toyota forecast a 20% decline in annual profit for the current financial year, citing cost and supply uncertainties linked to the Iran conflict. Its shares fell about 1.5%.

In the UK, investors watched early results from local elections that pointed to heavy losses for the Labour Party, though sterling held steady around $1.36 against the U.S. dollar.

Data in focus

Traders were also looking ahead to German trade data and U.S. jobs figures. Markets were pricing in an unemployment rate of 4.3%, which would be consistent with expectations that the Federal Reserve can keep interest rates unchanged for now.