Barclays strategists expect global equities to keep rising through year-end, but said the outlook depends on bond yields and oil prices remaining stable and on continued confidence in investment in artificial intelligence. According to Sina Finance, a team led by Emmanuel Cau said U.S. stocks are still supported by AI-related earnings, but the market is becoming increasingly dependent on a handful of technology companies, leaving the broader market more vulnerable.

The strategists said Europe faces pressure from higher financing costs, rising oil prices, and France's fiscal difficulties. They said investors have become more bearish on European stocks, but added that concerns about a broad financial crisis are overstated. European bank stocks could face further selling, although their underlying businesses remain solid and third-quarter earnings may help lift market confidence. Barclays also said higher bond yields mean corporate earnings will play an increasingly important role in driving stock gains.