Stocks Weather Stormy Q3 Despite Soaring Yields and Global Tensions

Global stock markets have surprisingly weathered a tumultuous third quarter, marked by rising global borrowing costs, currency interventions, wars, oil prices above $100 a barrel, and warnings about AI's potential to wipe out humanity.

Despite these challenges, major equity indexes are only 2% off their all-time highs and have risen more than 12% for the year after adding another $3 trillion in value.

In contrast, government bonds, considered a safe-haven asset, have been causing concern as yields soar. The 10-year US Treasury yield has reached its highest level since just before the 2007 financial crisis, while Japanese and German bond yields have also hit multi-decade highs.

AXA's chief economist Gilles Moec warned that this rise in yields is part of a new, upward trend, making investors 'very nervous.'