Global Markets Split as Inflation Revives Rate Concerns in U.S. and Japan

Inflation and corporate earnings pulled major equity markets in different directions this week, with U.S. indexes split and Asian trading mixed as investors weighed rate expectations.

On Wall Street, the S&P 500 and Dow advanced, while the Nasdaq Composite fell as technology shares sold off. Inflation readings above expectations reinforced expectations that the Fed will raise rates in December.

Japanese equities rose as producer-price inflation accelerated to 7.1% year over year, adding to expectations for further Bank of Japan tightening. Chinese stocks fell, leaving Asian markets mixed.

European shares gained on strong corporate earnings. Companies in the STOXX 600 were on track for 25% quarterly profit growth; energy stocks contributed, and Europe’s lower technology exposure cushioned volatility in AI-linked shares.