World shares advance as oil falls, bond yields retreat
SPY•World stocks rose 0.5% to two-week highs as oil prices and bond yields eased. The S&P 500 opened at a record high, while Brent crude fell about 2% to $98.15 a barrel.
1. Stocks rise, oil slips
World stocks climbed to two-week highs on Tuesday, with the global gauge up 0.5% and the pan-European STOXX 600 gaining 0.5%. The S&P 500 opened at a record high for the first time since mid-August, and the Nasdaq was on track for a third consecutive all-time high. Brent crude fell about 2% to $98.15 a barrel as resilient Middle East exports and a G7 emergency stockpile release eased supply concerns.
2. Yields ease, earnings ahead
Long-dated U.S. Treasury yields retreated from fresh 24-year highs, with the 10-year yield down 2.1 basis points to 5.29%. Investors looked ahead to third-quarter earnings, which begin in earnest next week; Goldman Sachs estimated consensus forecasts imply 27% growth in S&P 500 earnings, with more than half coming from companies benefiting from AI infrastructure spending. Nvidia rose 1.4%, putting it on track for a market value of nearly $6 trillion.
3. French debt in focus
France's 10-year bond yield fell about 18 basis points to 4.76% after reaching its highest level since the 2000s last week. The premium on French 10-year bonds over German debt narrowed to 125 basis points, after widening to 158.67 basis points last week, its highest since the euro zone debt crisis in 2011.
