Global Bond Selloff and Dollar Surge Impact Markets

A global bond selloff and rising U.S. Treasury yields hurt stocks and boosted the dollar. Economic signals limit prospects for interest rate cuts, affecting investor sentiment. European shares dipped, and oil prices fell, though gold advanced as uncertainty persists in global markets.

The global bond market faced continued pressure as a selloff extended into Wednesday, negatively impacting stocks and strengthening the U.S. dollar. This trend comes amid robust U.S. economic data that taper expectations for further cuts in interest rates. As the yield on the benchmark 10-year U.S. Treasury note rose to 4.73%, its highest point since April 2024, the situation spelled trouble for equities.

Investment officials express concern over rising bond yields risking equity market growth. Mark Malek, CIO at SiebertNXT, New York, highlighted bond yields nearing 5% as a significant risk factor for equities this quarter. Meanwhile, bonds sold off further following a CNN report suggesting President-elect Donald Trump might declare an economic emergency to impose tariffs globally.

The equity landscape showed volatility, with all major Wall Street indices sliding. The Dow, S&P 500, and Nasdaq all posted declines, weighed down by sectors like utilities and technology. Conversely, gold prices saw an uptick, providing a glimmer of positivity amid broader economic uncertainties.

(With inputs from agencies.)