Stocks Soar Amid AI Euphoria and Truce Hopes

Global stocks are poised for their best weekly performance since early August, despite surging bond yields and inflationary concerns.

The rally is driven by AI euphoria and optimism over a potential truce between the US and Iran, which could lead to an improvement in Middle East energy supplies.

Oil prices have retreated slightly as traders weigh up the possibility of a truce, but remain above $100 a barrel, keeping government bond yields near recent peaks.

Japan's 10-year bond yield touched 3.115%, its highest level since 1996, while inflation fears have bolstered bets on multiple Federal Reserve rate hikes.

Norway raised rates this week and Sweden's Riksbank signalled it may follow suit by the end of the year, keeping expectations for further Fed tightening on track.