01/10/2026
US Stocks Volatile as Soaring Yields Erase AI-Driven Gains Renewed rises in oil prices have intensified a global bond sell-off, leaving US equities in choppy territory and wiping out upward momentum fueled by AI trades.
S&P 500 futures erased an earlier 0.7% gain spurred by Micron Technology’s upbeat outlook. Bond yields have hit multi-decade highs: the 10-year US Treasury yield climbed to its highest level since 2002, while the 30-year UK gilt yield broke above 6% for the first time since 1998.
Brent crude briefly touched $100 per barrel. The US dollar edged close to its highest level since early July, and gold traded broadly flat.
With inflationary pressures prompting central banks around the world to raise interest rates, oil prices continue to steer global asset movements. Following the worst quarter for global bonds since 2024, US Treasury volatility has surged to a six-month peak, pushing the average yield on US government bonds above 4%.
AI-related trades remain a bright spot, with Nasdaq 100 futures up 0.4%. As hundreds of billions of dollars flow into global AI infrastructure, Micron and its peers in the memory chip sector keep securing a steady stream of orders.
Elsewhere in the tech space, Alphabet shares advanced in late trading after the firm rolled out its long-awaited flagship AI model. Separately, Tencent Holdings signed a roughly $7 billion leasing deal with cloud provider Oracle. The deal serves as another sign of robust demand for infrastructure supporting AI development worldwide.
[Disclaimer] Forex trading involves risk; please invest with caution. This content is for informational purposes and objective analysis only, and does not constitute any investment advice, basis for buying/selling, or guarantee of returns. Investors should make independent decisions based on their own financial situation and risk tolerance, and bear their own investment risks.
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