Wall Street climbs on AI earnings as French 10-year yield tops 5%

what happened

According to Reuters, Wall Street gained on Wednesday as optimism about artificial intelligence lifted tech shares, helped by earnings reports from SpaceX and Super Micro Computer. Calm energy, currency and US bond markets let tech results take center stage, while European trading was livelier. France's 10-year bond yield climbed to 5%, a level last seen in 2002.

The Reuters column also notes that Anthropic posted a net loss of $80.7 billion in the first half of the year, mostly due to a one-off $72 billion accounting charge, with revenue just over $16 billion. In US housing, pending home sales in September fell to their lowest level since records began, housing starts dropped 5.2%, and mortgage rates reached 7.50%, the highest in three years.

In the UK, government borrowing rose more than expected and public debt passed £3 trillion ahead of Chancellor John Healey's first budget next week. Traders now expect the Bank of England to raise rates on November 5, which has supported sterling, up almost 3% over the past month.

why it matters

For investors, the rise in French bond yields points to fiscal strain in the euro area. Weakness in US housing adds risk to growth. Expectations of tighter Bank of England policy keep sterling supported. Brent was steady and gold traded near $4,135 an ounce.

market impact

French bonds and sterling: higher yields pressure debt markets, BoE hike bets support GBP

tags

instruments