Stocks Near Record Highs as Investors Focus on AI Theme
Global stocks remained near record highs on Friday as investors focused on the AI theme following strong earnings. The MSCI All-World index traded just below its all-time high, and the STOXX 600 in Europe was slightly lower due to losses in the tech sector.
The benign US inflation data released earlier in the week dented expectations for a rate hike next month, but oil prices rose as talks to end the war in the Middle East faltered. Brent crude futures increased by 1.7% to $88.5 a barrel, and European natural gas futures were set for a 10% gain.
Despite geopolitical uncertainty, investors showed no signs of alarm, with short-dated bond yields rising only modestly and market-based measures of inflation expectations trending lower. Gold prices touched two-month highs as central banks and investors poured cash into the market due to fading expectations of aggressive rate hikes by the Fed.