Global Stocks Fall, Treasury Yields Drop, Oil Jumps Amid AI Worries and Middle East Tensions; French Bond Yields Climb

Major stock indexes globally experienced declines on Thursday, with the Nasdaq falling over 2%, as Meta Platforms' earnings report fueled concerns about the sustainability of the AI trade. Concurrently, US Treasury yields fell sharply, with the 10-year note dropping below 5% for the first time since September 23. Oil prices surged, with Brent crude reaching a five-month high, driven by renewed supply risks following Houthi attacks on Saudi Arabia. Adding to market jitters, French bond yields rose above equivalent US Treasuries for the first time since 2013, reflecting growing investor apprehension over France's deteriorating fiscal position and increasing debt burden.