Global stock markets received support from artificial intelligence investment, strong corporate earnings and resilient economic growth in September. However, rising bond yields, energy prices and inflation concerns continued to create uncertainty.
AI remained a key driver of technology and semiconductor shares. Meta’s launch of its Muse AI agent attracted investor attention and supported its share price, reflecting continued interest in the commercial applications of artificial intelligence.
Market focus is increasingly shifting towards returns from AI investment. Investors are looking for evidence that spending on infrastructure and technology will translate into higher revenues, profits and long-term competitive advantages.
Economic growth has also remained resilient, supported by consumer spending, business investment and demand for AI infrastructure. However, strong activity and higher oil prices have raised concerns that inflation could remain above central bank targets for longer than expected.
Rising government bond yields have put pressure on some sectors as markets reassess the outlook for interest rates. The US Federal Reserve continues to focus on inflation, with resilient economic activity and employment giving policymakers scope to maintain a restrictive approach if price pressures persist.
As the final quarter of the year begins, investors will be watching inflation data and economic indicators for signs of whether growth can continue without adding to price pressures.
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