Global equities reach record levels worldwide; bond yields near multi-decade highs.
Global equities reach record levels worldwide; bond yields near multi-decade highs. Views at a glance – August 2026 Views at a glance – August 2026 Strong earnings and growing demand for AI continue to support equity markets, although rising bond yields could become a headwind. Equities resilient as bond yields rise Global equities have reached mid-summer at record levels. The fundamental backdrop remains supportive, with resilient economic growth, strong corporate earnings and further evidence of growing demand for AI services. The picture in bond markets is more challenging and could yet become a headwind for equities. Yields on long-dated bonds are close to their highest levels in decades, even after a slight retreat in recent days. Continued concern around energy-driven inflation is one factor behind the move, but not the only one. Heavy debt issuance by the largest technology companies is putting pressure on corporate bond markets and may be increasing competition for investors’ capital. There is also more uncertainty about the outlook for monetary policy, as markets adjust to new leadership and a new communication strategy at the Federal Reserve. ...