Columnist Rahul Jacob argues the global economy is showing remarkable resilience, as the private sector adapts quickly to supply disruptions and governments, notably China and Japan, use strategic oil reserves to cushion the oil shock. Global business activity hit a 40-month high in September, and AI-related investment is surging, though stock market gains depend on an unusually narrow group of companies. He warns of clouds ahead: global jet fuel prices have jumped about 111% over the past year, credit default swaps hit record levels in September, and bond markets remain highly volatile. The IMF warns that higher commodity prices and fiscal concerns could materially lower 2027 global growth and raise inflation. The author also notes that cutting public debt in western Europe looks nearly impossible, as the riots in Paris suggest.
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Related tickers and likely impact
SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/20/2026 | 769.05 |
| Change that session | +0.34% |
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