AI Rally Lifts Global Equities as Brazil Sells Off and French Debt Jitters Linger

On Tuesday, October 27, U.S. equities pushed higher again, led by another rebound in artificial‑intelligence bellwethers. Major indexes such as the S&P 500 and the Nasdaq Composite moved back toward record territory, even as inflation remains elevated and policy rates hover near 5%. Expectations for strong earnings from companies like Nvidia and Broadcom are helping investors look past the macro headwinds, though recent sharp swings show that AI‑related names remain highly volatile.

The global picture was more mixed. In Brazil, equities sold off sharply as investors reassessed the policy outlook following the presidential election result, reviving concerns about fiscal discipline and state intervention. In contrast, French assets stabilized after a week of stress: yields on French government bonds, which had spiked on debt‑sustainability worries, eased, and the CAC 40 index managed a modest gain.

In U.S. Treasuries, longer‑dated yields were little changed as traders waited for the Federal Reserve’s policy decision on Wednesday, October 28. Futures markets largely price out another immediate rate hike, but stickier‑than‑expected inflation keeps the path for 2026 and beyond uncertain. Against this backdrop, investors are selectively adding back equity risk via AI and other growth stocks while keeping a close eye on sovereign‑debt and political risks in both developed and emerging markets.