Key facts
- World stocks reached two-week highs on Tuesday, with Wall Street indexes setting new records.
- The S&P 500 rose 0.66% to a record high, while the Nasdaq was up 0.6% and the Dow Jones Industrial Average gained 0.5%.
- The pan-European STOXX 600 index gained about 0.5%, and MSCI's global stock index rose 0.66%.
- France's 10-year bond yield dipped to 4.7%, and the euro rose 0.37% to 1.126.
- Goldman Sachs estimates S&P 500 earnings growth of 27%, with AI-driven spending contributing significantly.
- Brent crude was little changed around $100 a barrel.
World stocks reached two-week highs on Tuesday, with Wall Street indexes setting new records, as steady oil prices and falling bond yields helped steady sentiment. Investors are looking ahead to an earnings season they expect will be powered by continued AI-driven growth.
The S&P 500 touched a record high for the first time since mid-August, rising 0.66% on the day. The tech-heavy Nasdaq was up 0.6%, on track for its third consecutive all-time high, while the Dow Jones Industrial Average gained 0.5%.
The pan-European STOXX 600 index added about 0.5%, and MSCI's gauge of stocks across the globe rose 0.66%.
Bond markets found some respite after France's budget triggered a debt rout and fears of broader stress across the euro zone. France's 10-year bond yield dipped to 4.7%, and the euro rose 0.37% to 1.126, stabilizing after hitting a 17-month low.
Goldman Sachs estimates that consensus forecasts imply 27% growth in S&P 500 earnings for the third quarter, with more than half of that growth coming from companies benefiting from AI infrastructure spending. Nvidia, a key player in AI, rose 0.5%, approaching a market value of nearly $6 trillion.
Brent crude was little changed at about $100 a barrel, as resilient Middle East exports and a G7 emergency stockpile release eased supply concerns. Strategists at PIMCO expect stable global growth to continue while inflation moderates.
The dollar weakened broadly against most major currencies, reversing recent advances as investors pared back bets on U.S. interest rate hikes following a soft U.S. jobs report. Traders scaled back expectations of a Federal Reserve rate increase this month to 19% from about 50% a week earlier. Long-dated U.S. Treasury yields also eased, with the 10-year yield falling 4.4 basis points to 5.26% and the 30-year yield dropping 2.9 basis points to 5.63%. Spot gold rose 0.7% to $4,168 an ounce.