MSCI’s gauge for Asian equities climbed 1% to a record with technology shares leading the gains on renewed optimism for the artificial intelligence trade. South Korea, a poster child for AI investments, jumped 5% to an all-time high, with Samsung Electronics Co. reaching $1 trillion valuation.

Brent, the global crude oil benchmark, fell 1.3% to about $108 a barrel following Trump’s comments. The dollar, which emerged as the haven of choice during the Middle East conflict, weakened.

Contracts for the S&P 500 Index advanced 0.3% and those for the Nasdaq 100 climbed 0.7% after Trump’s comments, as cheaper oil bolstered expectations for easing inflation and stronger growth. The Wall Street gauges closed at a record high on Wednesday and the tech rally appeared to have more to run, with strong earnings from Advanced Micro Devices Inc. and Super Micro Computer Inc.

With geopolitical risk premiums easing, the prospect of lower energy costs and reduced uncertainty improves the outlook for global growth, reinforcing support for equities even at record levels. The backdrop also dovetails with a revival in the artificial intelligence trade, as easing inflation pressures and improved sentiment bolster expectations for stronger corporate earnings.

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“Our base-case for markets and the economy has been that there will be a near-term resolution between the US and Iran, allowing for energy prices to fall after the Strait of Hormuz is reopened,” said Chris Senyek at Wolfe Research.
Trump said he would pause a US-led effort to help stranded ships exit the Strait of Hormuz to see if an agreement with Iran to end the war could be finalized.“Project Freedom (The Movement of Ships through the Strait of Hormuz) will be paused for a short period of time to see whether or not the Agreement can be finalized and signed,” Trump said in a social media post on Tuesday.

Cheaper oil lifted the debt market with US long bonds rebounding during the New York session, sending the 30-year yield back below 5%. Even so, bond traders are boosting wagers that the Federal Reserve’s next policy move could be an interest-rate hike rather than a cut.

Elsewhere, the yen strengthened 0.1% to about 157.70 per dollar. Gold rose 0.8% to about $4,590 an ounce.

The rebound in global stocks from their Iran war lows has been so narrow that the market is primed for broader gains triggered by even slightly positive news, according to strategists at JPMorgan Chase & Co. led by Mislav Matejka.

“Many investors are trying to read the tea leaves on the next shoe to drop with the Iran war and oil prices, but stocks have historically moved on quickly from geopolitical events, and we believe this current issue is no different,” said Julian Koski at New Age Alpha.

A baby formula brand has recalled three batches after a toxin was discovered, according to the U.S. Food and Drug Administration (FDA).

According to the FDA’s report on Saturday, The a2 Milk Company (a2MC) voluntarily recalled its imported a2 Platinum Premium USA label infant formula for children between 0 and 12 months after additional testing found cereulide.

The recall highlights potential safety risks tied to cereulide contamination, a toxin that can cause vomiting and is difficult to eliminate once present in food products, raising concerns for parents of infants who rely on formula.

Cereulide is a heat-stable toxin produced by the bacterium Bacillus cereus that is primarily responsible for the “emetic” or vomiting type of food poisoning. It is notoriously difficult to eliminate because it can withstand high cooking temperatures and the acidic environment of the human stomach.

POPULAR POTATO CHIPS RECALLED DUE TO SALMONELLA FEARS

The a2 Milk Company voluntarily recalled its imported a2 Platinum Premium USA label infant formula. (FDA / Unknown)

A total of 63,078 units were affected, with an estimated 16,428 units sold to consumers. 

The affected batches were only sold in the U.S. through the brand’s website, Amazon and Meijer stores.

“Importation rights expired on December 31st, 2025, and the Product has been discontinued and removed from sale prior to the initiation of the recall,” the FDA’s report read.

The recalled formula was sold in 31.7 oz tins with use-by dates of July 15, 2026, January 15, 2027, and January 21, 2027. Batch numbers include 2210269454, 2210324609 and 2210321712.

FROZEN PIZZA SOLD AT WALMART, ALDI RECALLED OVER SALMONELLA CONCERNS

No illnesses have currently been reported as a result of the formula. (Getty Images / Getty Images)

A representative for a2MC did not immediately respond to FOX Business’ request for comment.

No illnesses have been reported, but consumers are urged to throw out affected batches or return them to their place of purchase for a full refund.

Customers are urged to either discard the affected formula or to return it to its place of purchase in exchange for a full refund. (iStock / iStock)

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This recall follows a similar incident earlier this year, when Nestle, Danone and Lactalis pulled infant formula products over potential cereulide contamination, according to a prior FOX Business report.

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An investment banker is offering up about $8 million in Bay Area real estate, including a nearly $5 million house, in exchange for stock options for AI giant Anthropic ahead of the company’s potential initial public offering (IPO).

Storm Duncan, the founder of tech investment bank Ignatious, is proposing a deal that would see him exchange a four-bedroom, five-bath estate in Mill Valley in exchange for Anthropic shares, as the company reportedly explores an IPO this year, Realtor.com reported.

Duncan’s 4,372-square-foot home was built in 2005 and has views across San Francisco Bay as well as of the surrounding, while also featuring an infinity pool and chef’s kitchen area. Realtor.com’s automated valuation models put a $4.8 million price tag on the home, while Duncan says his 11-acre property next door is worth about $4 million and would be included in a deal.

Anthropic, the creator of AI assistant Claude, is looking to secure financing based on a valuation of close to $1 trillion, according to reports, though Duncan is basing his proposed deal on an $800 billion valuation for the tech startup.

NYC LOST MORE RESIDENTS ACROSS ALL INCOME LEVELS IN 2025 AS AMERICANS FLEE HIGH-COST BLUE CITIES

A Bay Area tech investor is looking to swap about $8 million in real estate for Anthropic stock ahead of a possible IPO. (Brandon Sloter/Getty Images / Getty Images)

Duncan is hoping to make a deal with an Anthropic employee who has a large number of shares in the company that are currently illiquid, as the company hasn’t gone public and transfers of shares are subject to restrictions. While he already holds about $1 million in Anthropic shares, he wants to increase his exposure to the company.

He told Realtor.com that he sees the deal as potentially appealing to a younger Anthropic employee who could be on track to have a large amount of valuable stock in the AI company that they want to diversify out of, adding that ahead of the IPO it would allow them to lower their tax basis. 

CALIFORNIA BUILT MORE HOMES THAN PEOPLE OVER SIX YEARS – SO WHY IS HOUSING STILL SO TIGHT?

Anthropic is the creator of the Claude AI assistant. (Jaque Silva/NurPhoto via Getty Images)

Duncan told the outlet that it’s a “diversification play for me, too. Less exposure to real estate, more exposure to AI. And I think Anthropic is demonstrating that it will have the most fundamental value.”

The property hasn’t been listed with agencies or the multiple listing service, according to the report, but launched a LinkedIn page for it and has received some genuine inquiries so far that haven’t led to a sale.

THESE 8 US HOUSING MARKETS FAVOR BUYERS

Duncan’s multi-million dollar property he’s offering in the swap is located in the Bay Area. (Justin Sullivan/Getty Images)

Duncan said in the report that he would structure the deal so that shares would be transferred after the lockup period concludes.

He said that he’s realistic about the possibility of finding the right buyer who has Anthropic shares worth millions of dollars, but he thought it’s worth a shot, explaining that he thinks “it’s a less than 50% chance that something happens,” in part because a “home is a very emotional purchase.”

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NEW YORK — DigitalOcean Holdings Inc. (NYSE: DOCN) shares exploded more than 35% Tuesday morning, surging to around $147.61 after the cloud infrastructure company reported blockbuster first-quarter 2026 results that far exceeded Wall Street expectations and highlighted accelerating AI-driven growth.

The stock, which closed Monday at roughly $108, jumped as much as 38.55% intraday on heavy volume as investors cheered record revenue, strong customer expansion and upbeat guidance tied to its expanding “agentic inference cloud” platform. The move added billions to the company’s market capitalization in a single session.

DigitalOcean reported first-quarter revenue of $257.9 million, up 22% year-over-year and well above analyst estimates of approximately $249.8 million. Non-GAAP earnings per share reached $0.44, crushing consensus forecasts of $0.27. The company also posted robust growth in key metrics, including million-dollar customer ARR surging 179% and AI customer ARR jumping 221%.

AI and Inference Cloud Driving Surge

Management highlighted strong traction in its AI-native offerings, including the recently launched Inference Engine. The company noted that AI workloads are becoming a significant growth driver, with customers reporting substantial cost savings and performance improvements compared to larger cloud providers.

Annual run-rate revenue reached $1.032 billion, up 22% year-over-year. Net income attributable to common stockholders stood at $16 million. Executives expressed confidence in continued momentum, citing demand from startups and enterprises building AI applications on the platform.

Raised Guidance Fuels Optimism

DigitalOcean also provided optimistic forward-looking commentary, reinforcing investor enthusiasm. The strong beat and positive tone on AI opportunities triggered widespread analyst upgrades and price target increases in recent weeks, setting the stage for Tuesday’s breakout.

Company Transformation and Strategy

DigitalOcean has evolved from a developer-friendly VPS provider into a specialized cloud platform focused on simplicity, affordability and high-performance AI inference. Its agentic inference cloud targets workloads that require fast, cost-effective model deployment — a sweet spot as AI adoption accelerates among smaller companies and startups.

The company operates a global network optimized for low-latency applications and has been winning business from customers seeking alternatives to hyperscale providers like AWS, Azure and Google Cloud. Recent product launches and acquisitions have strengthened its position in the fast-growing inference market.

Analyst and Market Reaction

Wall Street responded positively to the results. Multiple firms raised price targets following the report, with several highlighting DigitalOcean’s ability to capture AI market share while maintaining disciplined growth. The stock’s dramatic move reflects both the earnings surprise and broader enthusiasm for AI infrastructure plays.

Volume surged as retail and institutional investors piled in. The rally marks one of the largest single-day percentage gains for the stock in recent memory and pushes it to fresh all-time highs.

Valuation and Outlook

Even after today’s surge, analysts see further upside potential given the company’s growth trajectory. However, the rapid move also raises questions about near-term valuation and the risk of profit-taking. DigitalOcean trades at a premium multiple, reflecting expectations of sustained high growth in the AI cloud sector.

For the remainder of 2026, the company expects continued expansion in its core business and AI offerings. Investors will watch upcoming quarters for evidence of sustained momentum and margin trends as the company invests in capacity.

Broader Context

DigitalOcean’s performance comes amid a strong period for select cloud and AI infrastructure names. While larger hyperscalers dominate headlines, smaller, specialized providers like DigitalOcean are carving out niches with better economics for certain workloads. Tuesday’s reaction underscores investor appetite for companies delivering tangible AI growth.

As the earnings season progresses, DigitalOcean’s results provide a positive data point for the broader technology sector. The company’s focus on developer experience and cost efficiency continues to resonate in a market seeking practical AI solutions.

The stock’s explosive move on Tuesday highlights the market’s reward for companies that execute well in high-growth areas. Whether this momentum sustains will depend on future delivery, but the Q1 report has clearly energized investors and reaffirmed DigitalOcean’s position as a rising player in the cloud and AI infrastructure landscape.