Stocks worldwide drop, US bond yields increase, concerns about US rate outlook

From Investing.com: 2024-09-25 17:41:30

Global stock indexes mostly dropped on Wednesday, with energy shares contributing to the decline. U.S. Treasury yields rose as investors anticipate a soft landing for the U.S. economy. China’s central bank unveiled a stimulus plan to boost its economy. In the U.S., new home sales fell in August, impacting consumer confidence.

The Federal Reserve began a series of interest rate cuts, with markets now expecting a 50-basis point cut in November. Yields are trending higher at the start of the Fed cutting cycle. Investors await data on U.S. weekly jobless claims and personal consumption expenditures price index. Wall Street saw mixed results, with the Dow and S&P 500 ending lower.

Energy sector led declines in the S&P 500, with oil prices also falling. Global stock indexes, including MSCI’s gauge, dropped on Wednesday. Dollar bounced off a 14-month low against the euro. U.S. 10-year yields rose since the recent rate cut. Oil prices declined due to easing concerns in Libya.

Gold prices reached a record high as Fed rate cut expectations increased. Gold gained 0.2% to $2,662.00 per ounce. Euro fell 0.41% against the dollar. Dollar rose against the Japanese yen and Chinese yuan. Energy shares fell, global stock indexes dropped, and Treasury yields rose on Wednesday.



Read more at Investing.com: Stocks decline, US bond yields rise; investors assess US rate outlook By Reuters