10/05/2026
Global markets navigated a volatile week as rising bond yields, persistent inflation concerns and geopolitical uncertainty competed with continued enthusiasm for AI-led technology investment.
The U.S. 10-year Treasury yield briefly climbed above 5.3% before retreating after softer-than-expected employment data. September payroll growth of 29,000 fell well below expectations, while unemployment ticked up to 4.2%. Markets sharply reduced the perceived probability of another near-term Fed rate hike.
Equities nevertheless remained resilient. The S&P 500 gained 1.23%, while the Nasdaq 100 reached fresh highs, propelled by Nvidia, Micron and renewed momentum in semiconductors and mega-cap technology. The key distinction beneath the headline indices: chipmakers benefiting directly from AI capital spending continue to lead, while hyperscalers financing massive infrastructure buildouts have lagged.
Outside the U.S., European markets contended with higher yields and renewed fiscal concerns in France, widening the French-German 10-year spread beyond 150 basis points. The euro weakened, while the Swiss franc regained its traditional safe-haven appeal.
Energy markets added another layer of complexity. Strategic-reserve releases offered late-week relief, but disruption risks around the Red Sea and Strait of Hormuz kept oil prices volatile. Meanwhile, a stronger dollar and elevated real yields weighed on gold.
This week’s focus shifts to Treasury and Japanese government-bond auctions, Fed meeting minutes, and whether demand for long-dated debt can absorb elevated issuance without pushing yields materially higher.
The broader takeaway: markets are pricing a “higher for longer” rate environment, yet AI’s perceived return potential is still outweighing funding-cost concerns for technology leaders. The growing gap between the VXN and VIX suggests investors may be beginning to price more risk into the tech-heavy rally.
The information above has been obtained from sources considered reliable, but no representation is made as to its completeness, accuracy or timeliness. All information and opinions expressed are subject to change without notice. Information provided in this report is not intended to be, and should not be construed as, investment, legal or tax advice; and does not constitute an offer, or a solicitation of any offer, to buy or sell any security, investment or other product.
For illustrative purposes only. The graphic depicts a general investment approach and is not intended as personalized investment advice. Asset allocation and model selection will vary based on each client's objectives, risk tolerance, financial circumstances, and investment time horizon.
