The Pakistan Stock Exchange (PSX) continued its winning streak on Monday, closing at a record-breaking high and keeping the bullish momentum alive.

Investors had plenty to cheer about as the benchmark KSE-100 Index soared by 1,248 points, or 1%, settling at an all-time closing high of 125,627.31.

During intraday trading, the index peaked at 125,748.58, a new milestone that reflects growing investor confidence amid a more stable political and economic backdrop. This surge follows a stellar week for the market, where the KSE-100 Index jumped by a remarkable 4,355 points, marking a 3.6% gain on a week-on-week basis and closing at 124,379 points last Friday.

The recent rally is being fuelled by easing geopolitical tensions in the Middle East and the smooth passage of the federal budget in the National Assembly—two key developments that have boosted investor sentiment across the board. The bullish momentum at PSX seems to be gaining traction with every passing day, signalling robust market optimism.

On the global front, Asian markets were mostly positive, with Japan’s Nikkei rising 1.6% and South Korean stocks adding 0.8%. The rally came as Canada moved to drop its digital services tax, smoothing trade relations with the U.S. and offering some relief to global investors. Meanwhile, Wall Street remains energised by strong demand for megacap tech stocks like Nvidia, Amazon, and Alphabet, helping Nasdaq futures rise by 0.4%.

However, investors are keeping a cautious eye on the U.S. Congress, where a major tax-cutting and spending bill is inching its way through the Senate. The Congressional Budget Office’s projection of a $3.3 trillion addition to U.S. debt is raising questions about global demand for U.S. Treasuries.