Bond Yield Pullback Helps Global Stocks Recover From AI Selloff
Lower Treasury yields and a recovery in chip shares lifted global equities, even as strong US inflation data kept rate concerns alive.
Key takeaways
- The US 10-year Treasury yield fell to 5.08% on Thursday before trading flat.
- Fed rate-hike expectations eased after Kevin Warsh’s comments on artificial intelligence.
- Samsung Electronics and SK Hynix gained more than 4% in Asian trading, according to Bloomberg HT.
Global stocks rose on Friday as technology shares recovered and bond yields eased. The US 10-year Treasury yield fell 11 basis points on Thursday to 5.08%, then traded flat.
US producer prices rose 1.3% in September from a month earlier and 6.3% from a year earlier, both above expectations. Retail sales also beat forecasts, keeping concerns about persistent inflation and further Federal Reserve rate increases in focus.
Technology shares rebounded after Fed Chair Kevin Warsh offered an optimistic view of artificial intelligence. Bloomberg HT reported that markets lowered the perceived chance of a Fed rate increase this month to 15% from above 25% after his remarks.
Chip stocks also found support after Nvidia CEO Jensen Huang defended the finances of CoreWeave, a major customer, Bloomberg HT reported. Crossbridge Capital’s Manish Singh said AI demand and its long-term opportunity were real, but not every company building infrastructure would deliver attractive returns for investors.
Asian shares advanced, with Samsung Electronics and SK Hynix each gaining more than 4%, according to Bloomberg HT. On Thursday, the S&P 500 rose 0.33%, while Nvidia fell nearly 2% and the Nasdaq gained 0.08%.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
