A rally in artificial-intelligence stocks was tempered by the intensifying rout in government bonds in early European trade, as investors balanced AI enthusiasm with an increasingly gloomy macroeconomic picture.

Micron Technology earnings after the bell Wednesday comfortably beat consensus expectations, renewing investor confidence that demand for the AI buildout was strong and long-lasting. The print lifted AI-related stocks in Asian trade, with South Korean giants Samsung Electronics and SK Hynix each gaining around 3%.

However, still-rising yields dampened the Micron-driven enthusiasm as the European morning progressed. Nasdaq futures pared earlier gains, but still rose 0.4% as chip makers broadly gained. Meanwhile, futures for the Dow Jones Industrial Average dropped 0.5%, while the S&P 500 was flat.

Ten-year Treasury yields rose another 4.7 basis points to 5.338%, extending highs not seen since 2002. The 30-year yields jumped 4.1 basis points to 5.675%, while two-year yields moved closer to 5%, trading around 4.930%. Sovereign debt sold off in Europe, too, with 30-year U.K. government bond yields hitting their highest levels since 1998.

Rising oil prices contributed to upward pressure on yields. Front-month Brent crude for December delivery rose toward $100 a barrel, with the contracts adding 1.4% to $99.36 a barrel. WTI for November delivery traded around $92 a barrel. Diplomatic efforts over the war in the Middle East show no signs of progress, while refined-product supply remains tight.

Foreign exchange markets were volatile, with the U.S. dollar strengthening to a three-month high against a basket of global currencies, while the euro hit a 16-month low against the dollar. Bitcoin dropped below $84,000, while gold was steady at around $4,190 a troy ounce.

The picture in European equities was gloomy. Early gains for European AI-linked stocks faded through morning trade, while a sharp fall in banks and other rate-sensitive sectors saw major European indexes fall by more than 1% across the board. The Stoxx 600 fell 1.2%.

For the day ahead, macro data releases include U.S. September ISM manufacturing data, while Federal Reserve Vice Chair Philip Jefferson is one of a clutch of Fed speakers.