Asian markets mostly advanced on Monday after easing inflation concerns reduced the perceived likelihood of another Federal Reserve rate hike. Japan’s Nikkei 225 jumped 2.5% in early trading, topping 70,000 for the first time in three months. Australia and Hong Kong were little changed, while markets in Shanghai and South Korea were closed for holidays. Artificial intelligence-linked shares led gains, with Tokyo Electron and SoftBank Group among the biggest movers.

The U.S. Labor Department reported that nonfarm payrolls rose by just 29,000 last month, far below market expectations and down from 133,000 in August, signaling a notable cooling in the labor market. Investors quickly pared back expectations for near-term Federal Reserve rate hikes. U.S. stocks advanced across the board, with the S&P 500 sitting within 1% of its record high.

Fresh volatility in bond markets put pressure on stock markets worldwide. The U.S. 10-year Treasury yield swung, while U.K. and French government bond yields jumped sharply overnight before seesawing again. The S&P 500 fell 0.3%, the Dow dropped 255 points, and the Nasdaq composite lost 0.4%. Losses were steeper in Europe, with London’s FTSE 100 down 1.6% and Paris’s CAC 40 off 1.5%.

U.S. August inflation came in below expectations, easing concerns that the Federal Reserve may keep raising rates and pulling short-term Treasury yields lower. Major U.S. stock indexes climbed in intraday trading, with the S&P 500 on track for a small September gain. The Nasdaq led the advance. Earlier, the 10-year Treasury yield briefly touched its highest level since 2002.

McDonald’s said Wednesday it will invest $8.5 billion over the next decade to modernize restaurants worldwide and roll out higher-protein items such as a grilled chicken sandwich and wraps. The company also plans to automate more tasks, including inventory and scheduling, to improve kitchen efficiency. With fast-food traffic flattening, CEO Chris Kempczinski said growth will depend on taking share from rivals and boosting productivity. McDonald’s shares fell nearly 5% on Wednesday, marking their biggest one-day drop since April 2025.

The Bank of England kept its benchmark interest rate unchanged at 3.75%, but the Monetary Policy Committee was split, with three members calling for a 25-basis-point increase to 4%. Markets expect the central bank could begin raising rates in November or December to counter inflation pressure from higher fuel prices driven by the Iran conflict.

U.S. stocks came under pressure Tuesday, with the S&P 500 down 0.4%, the Dow Jones Industrial Average off 506 points, and the Nasdaq composite lower by 0.6%. The drag came as oil prices climbed and the bond market sold off. The 10-year U.S. Treasury yield rose to 5.01%, the first move above 5% since 2023.

U.S. stock futures fell Tuesday, with S&P 500 futures down 0.2%, Dow futures down 0.3% and Nasdaq futures off 0.1%. Artificial intelligence-related shares came under pressure on safety concerns. Oil prices continued to rise as the Middle East conflict persists, while the 10-year U.S. Treasury yield climbed to 5.01%, the highest level in 19 years. The market is also weighing increased expectations of a Federal Reserve rate hike, adding to pressure on equities.

Global stocks mostly fell, led by declines in AI-related shares. SoftBank Group slid more than 10% after OpenAI CEO Sam Altman backed Anthropic CEO Dario Amodei’s weekend call for the AI industry to slow development to improve safety. Japan’s Nikkei 225 fell 0.8% and South Korea’s Kospi dropped 3.3%. Oil prices rose more than 2% after Saudi Arabia shut a key pipeline following an attack.