Global stocks near record highs despite turbulent quarter of AI, bond, and oil shocks

Global stock indexes remain near record highs despite a turbulent third quarter marked by surging bond yields, currency interventions, wars, and oil prices above $100 a barrel, with major equity benchmarks up over 12% for the year. The main concern has shifted to government bonds, with the 10-year US Treasury yield surpassing 5% for the first time since before the 2007 financial crisis, while yields in Japan, Germany, France, and Britain hit multi-decade peaks, causing significant investor losses. South Korea's chip-heavy index fell nearly 20% this quarter, though corporate earnings growth remains unprecedented. Looking ahead, investors are watching rising interest rates, upcoming elections in Brazil and the US, and whether sustained high bond yields will eventually crack the AI-driven equity rally.