US Stocks Rise as AI Strength Offsets Bond Volatility - Europe Market Wrap
US stocks advanced as strength in AI-related shares offset renewed volatility in bond markets and higher oil prices. S&P 500 futures rose around 0.4%, while chipmakers gained after an upbeat outlook from Micron boosted sentiment across the technology sector. Treasury yields swung sharply, with the US 10-year yield briefly reaching its highest level since 2002. The UK 30-year gilt yield also climbed above 6% for the first time since 1998 before easing. Markets continued to price the possibility of multiple Fed rate hikes over the next 12 months as inflation concerns remained elevated. Brent crude moved toward $100 a barrel as traders weighed stronger Middle East oil flows against the risk of renewed escalation. The Dollar headed for a three-month high, while Gold edged higher. Oil remained a key driver of broader market moves as investors assessed its impact on inflation and interest-rate expectations. European stocks weakened, with the Stoxx 600 heading toward its lowest level since June and the FTSE 100 down around 1.1%. French short-dated bonds also underperformed as the government’s budget presentation got underway amid continued concern over the country’s debt burden. Elsewhere
US stocks advanced as strength in AI-related shares offset renewed volatility in bond markets and higher oil prices. 4%, while chipmakers gained after an upbeat outlook from Micron boosted sentiment across the technology sector. Treasury yields swung sharply, with the US 10-year yield briefly reaching its highest level since 2002. The UK 30-year gilt yield also climbed above 6% for the first time since 1998 before easing.
Markets continued to price the possibility of multiple Fed rate hikes over the next 12 months as inflation concerns remained elevated. Brent crude moved toward $100 a barrel as traders weighed stronger Middle East oil flows against the risk of renewed escalation. The Dollar headed for a three-month high, while Gold edged higher. Oil remained a key driver of broader market moves as investors assessed its impact on inflation and interest-rate expectations.
1%. French short-dated bonds also underperformed as the government’s budget presentation got underway amid continued concern over the country’s debt burden. Elsewhere, Alphabet rose more than 2% after beginning the rollout of its latest flagship AI model. Tencent also signed an estimated $7 billion lease deal with Oracle, providing another sign of continued heavy investment in AI infrastructure.