World shares advance as oil falls, bond yields retreat
SPY•World stocks rose to two-week highs on Tuesday as oil prices and bond yields eased; the STOXX 600 gained 0.6%, while Nasdaq futures rose 0.7%. Brent crude fell 2% to $97.96 a barrel, and the U.S. 10-year Treasury yield slipped 3 basis points to 5.2815%.
1. Stocks and oil
World stocks reached two-week highs on Tuesday, with futures pointing to a record-high open for the S&P 500 and the Nasdaq on track for a third consecutive all-time high. The pan-European STOXX 600 rose 0.6%, and MSCI’s gauge of global stocks gained 0.2%. Brent crude fell 2% to $97.96 a barrel after resilient Middle East exports and a G7 emergency stockpile release eased supply concerns, while ongoing regional security risks limited losses.
2. Bond yields ease
Long-dated U.S. Treasury yields retreated after reaching fresh 24-year highs on Monday. The 10-year yield fell 3 basis points to 5.2815%, and the 30-year yield declined 2.8 basis points to 5.6356%. France’s 10-year yield dropped 15.3 basis points to 4.708% after a recent rise tied to budget concerns; the premium on French 10-year bonds over German debt narrowed to 125 basis points.
3. Earnings in focus
Investors looked ahead to third-quarter earnings, which begin in earnest next week. Goldman Sachs estimated that 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% in premarket trading, while Meta Platforms and Alphabet gained about 0.5%.
