Global Market Volatility: Tech Selloff, U.S. GDP Growth, and Yen Resurgence

Global stock markets experienced volatility, with tech stocks leading a downturn, contrasting with a rise in small-cap stocks. Key drivers included U.S. GDP growth, which exceeded expectations, and a potential rate hike by the Bank of Japan. U.S. Treasury yields eased and oil prices rose amidst economic uncertainties.

Global stock markets remained volatile on Thursday, continuing losses after a tech-led downturn the previous session. Tesla shares rose 2%, while Nvidia shares fell 1.7%. Small-cap stocks, represented by the Russell 2000, rose 1.3%, driven by dip buyers and positive GDP data that suggested a potential soft landing for the U.S. economy.

The Dow Jones Industrial Average increased by 81.20 points to 39,935.07, while the S&P 500 and Nasdaq Composite saw declines. The positive GDP report has fueled expectations for a September interest rate cut by the Federal Reserve, although next week’s Bank of Japan meeting is also being closely watched for potential rate hikes.

Meanwhile, the Japanese yen stabilized after a sharp rally, influenced by global stock selloffs and investor shifts to safe-haven bonds. Oil prices rose on strong U.S. economic data, and China's central bank’s surprise rate cut intensified concerns about its economic health.