Key facts
- Global stocks rallied on Monday, with the Nasdaq Composite nearing its record high.
- The bullish AI narrative returned, boosting tech stocks.
- Global oil prices slid, with Brent crude falling below $100 a barrel.
- US diesel prices reached a new record high.
- The 10-year French-German bond yield spread widened to its highest level since 2012.
- US President Donald Trump's approval rating fell to a career low of 32%.
Global stocks surged on Monday, driven by a renewed enthusiasm for artificial intelligence and a significant drop in oil prices. The Nasdaq Composite came within 0.02% of its record high set in June, as tech stocks, including chipmakers, posted substantial gains. Meta and Advanced Micro Devices each rose 11%, while Intel jumped 12%.
Investors also welcomed the fourth consecutive slide in global oil prices, with Brent crude falling below $100 a barrel and WTI dropping 5%. However, average US diesel prices nudged to a new high of $6.51 per gallon, a factor contributing to concerns about inflation.
In Europe, political risks continued to weigh on markets. The 10-year French-German bond yield spread widened to 104 basis points on Friday, its highest level since July 2012, as worries over France's public finances intensified. German Chancellor Friedrich Merz is facing political pressure following his party's worst regional election defeat in postwar Germany.
Across the Atlantic, US President Donald Trump's approval rating has fallen to a career low of 32%, according to a Reuters/Ipsos poll. High living costs, including record diesel prices, and the ongoing conflict in Iran are cited as contributing factors, with the upcoming November midterm elections approaching.