The unbroken run of equity market gains since April’s Liberation Day sell-off continued into October, driven again by AI stocks. The MSCI World index returned 2.0% in the month, with the S&P 500 +2.3% and the Magnificent 7 (Mag 7) megacap tech stocks +5.2%. By the end of October, the market capitalisation of the Mag 7 represented 36% of the S&P 500 (and 24% of the MSCI World index), compared with 32% a year ago. Markets outside the US also produced solid gains, with Japan’s Topix index +6.2%, and the UK +4.2%, both in local currency terms. A continuing recovery in the USD from its mid-year lows, up 1.9% on a trade weighted basis in October, reduced returns in USD terms. Currency moves made the biggest contribution to returns in bonds, with the JPMorgan Global Government bond index -0.5%, masking falls in bond yields and a positive return on US Treasuries of +0.6%.