Global Stocks Gain Amid U.S. Treasury Yield Pressure

Global stocks rebounded with gains over 16%, led by Wall Street's energy sector, despite pressure from elevated U.S. Treasury yields. The rally, sustained by AI growth expectations and possible Fed rate cuts, faces challenges from economic forecasts and policy uncertainties surrounding the incoming Trump administration.

Global stocks made a comeback on Tuesday, recovering from a series of declines attributed to rising U.S. Treasury yields. Despite these pressures, stocks worldwide are set to end the year with impressive gains exceeding 16%. The energy sector led Wall Street's recovery, with all 11 major S&P 500 sectors showing improvements.

The Dow Jones Industrial Average climbed 112.81 points to 42,688.89, and the S&P 500 rose by 5.82 points to 5,913.01. In contrast, the Nasdaq Composite dipped slightly by 21.86 points to 19,463.98. The S&P 500's upward trajectory of over 24% this year mirrors a robust two-year performance reminiscent of gains seen in the late 1990s.

This market surge has been driven by anticipation of growth in artificial intelligence, the prospect of interest rate cuts by the Federal Reserve, and potential deregulation by the soon-to-be Trump administration. However, concerns about inflation stemming from proposed tariffs and economic predictions have tempered the rally. Analysts emphasize the need for clarity on the administration's policies for sustained equity gains, especially for technology and AI sectors.

(With inputs from agencies.)