Global stocks balance rate shock against AI optimism as week closes

On Friday, September 25, global equity markets managed to hold their ground despite a fresh push higher in government bond yields and persistently elevated oil prices. In the US, major benchmarks including the S&P 500 traded slightly in positive territory and remained on track for a gain for the week, even as investors continued to digest a sharp repricing in the bond market. A stronger‑than‑expected business activity survey from S&P Global reinforced the view that the economy is still expanding, raising the prospect that the Federal Reserve could keep policy tighter for longer without derailing growth.

That mix of resilient macro data and higher yields produced a familiar tug‑of‑war: value and financial stocks benefited from steeper curves, while longer‑duration growth names felt pressure. Yet enthusiasm around artificial‑intelligence themes—ranging from semiconductor suppliers to cloud and software names—continued to attract buyers and helped support indices near recent highs.

In Asia, Japanese equities outperformed on the back of strong demand for chip‑related names, whereas Chinese and Hong Kong markets lagged amid concerns about global rate moves and domestic growth headwinds. European stocks finished mostly higher but off intraday peaks as traders weighed whether AI‑driven earnings momentum can keep offsetting the drag from rising funding costs and oil near 100 dollars a barrel. For now, positioning suggests investors are cautiously optimistic but acutely sensitive to any signs that higher yields start to bite into corporate profits.