Global Stock Markets Climb on Easing Oil Prices and Bond Yields
Stock markets around the world rose on Monday as oil prices and bond yields retreated from their highs of last week. The S&P 500 index jumped 0.6%, pulling back within 1.3% of its all-time high set in August. The Dow Jones Industrial Average climbed 224 points, or 0.4%, while the Nasdaq composite rose 0.8%. Brent oil prices fell 3.1% to $100.62 per barrel, down from nearly $110 last week but still higher than its summer low of around $72.
The easing of oil prices helped reduce pressure on bond yields, which had surged above the 5% threshold for the first time in three years. The yield on the 10-year Treasury eased to 4.96%, down from 5.01% late Friday. Morgan Stanley's Michael Wilson warned that another jump in oil prices could hold back the US stock market from reaching its year-end forecast.
Stocks tied to the artificial-intelligence industry, including Advanced Micro Devices and Nvidia, stabilized after last week's decline. Leaders of the AI industry have cautioned against a slowdown in development for safety reasons. Coinbase Global and Robinhood Markets rallied as Bitcoin's price rose back above $85,000, returning to its January level.
Stock indexes worldwide also climbed, with gains of 1% in France, 1.2% in Hong Kong, and 1.6% in South Korea. Treasury Secretary Scott Bessent said the US had a 'very successful engagement' with China during talks on trade and AI.