Stocks advance on AI earnings as French bond yield tops 5%

Global equities advanced on October 21 as results from companies focused on artificial intelligence supported buying. French government debt came under pressure, with the 10-year yield exceeding 5% for the first time since 2002 amid concerns over the country's economic outlook.

U.S. stocks finished higher across the main indexes. The Nasdaq Composite closed at 26,702.86, up 1.05%, while the S&P 500 added 0.58% to reach 7,757.17. The Dow Jones Industrial Average ended at 52,856.09, a gain of 0.69%.

Super Micro shares advanced 9.5% after the AI server company projected quarterly revenue and profit margin above Wall Street estimates. Adam Sarhan, chief executive of 50 Park Investments, said earnings ranging from mixed to stronger than expected were easing investor concerns. He also cited declining U.S. bond yields and reduced expectations for interest rate increases.

The global stock gauge compiled by MSCI increased 0.7% to 1,137.88, and Europe's STOXX 600 gained 0.92%. In the Treasury market, the benchmark U.S. 10-year yield eased by 0.6 basis point, reaching 5.111%.

French supermarket operator Carrefour lost about 13% after lowering its guidance because of recent protests. The gap between French and German 10-year yields moved back toward nearly 160 basis points, the 15-year high reached in early October.

The dollar index declined 0.14% to 101.65. Australia's currency rose 0.41% against the U.S. dollar to $0.7031 after Reserve Bank of Australia Deputy Governor Andrew Hauser said the inflation outlook had worsened materially.

Oil prices were mixed at settlement. Brent added 3 cents to $108.82 a barrel, while U.S. West Texas Intermediate lost 67 cents, or 0.7%, to $97.15.