Global Markets Watch: Fed Signals and Economic Indicators

MSCI's global equities index experienced slight fluctuations, closing lower on Tuesday. U.S. Treasury yields rose following Federal Reserve Chair Jerome Powell's comments on potential rate cuts, although he did not specify timing. Wall Street indices closed slightly higher and economic indicators pointed to cautious optimism regarding inflation easing.

MSCI's global equities index saw minor fluctuations, edging lower on Tuesday, while U.S. Treasury yields rose after Federal Reserve Chair Jerome Powell hinted at rate cuts without specifying a timeline. Key Wall Street indices managed modest gains, continuing their streak of record highs but closed lower than session peaks.

Powell expressed confidence that inflation would return to the Fed's target, emphasizing risks to the job market and economy if interest rates remain elevated too long. Despite no clear signal on rate cut timing, analysts suggest Powell is preparing for potential cuts based on further economic data.

Traders are betting on a 70% chance of a rate cut by September. Wall Street showed mixed results with the Dow down by 0.13%, S&P 500 slightly up by 0.07%, and Nasdaq up by 0.14%. Key global and European indices also saw declines, reflecting ongoing market caution.

(With inputs from agencies.)