Global Bond Selloff Triggers Market Turmoil

A continued global bond selloff pressured stock prices and boosted the dollar, dimming expectations for aggressive interest rate cuts. The benchmark 10-year U.S. Treasury yield peaked at 4.73%, while markets react to potential economic emergency declarations by President-elect Trump. European shares also dipped in response.

A persistent global bond selloff on Wednesday pushed stock prices downward and strengthened the dollar, as stronger than expected U.S. economic data tempered hopes for imminent interest rate cuts. The 10-year U.S. Treasury yield climbed to 4.73%, its highest mark since April 2024, continuing from a rise the prior day.

SiebertNXT's Chief Investment Officer Mark Malek expressed concerns over equities, highlighting that rising bond yields to 5% would deter buyers. The market witnessed heightened activity following a CNN report that President-elect Donald Trump may declare a national economic emergency to justify universal tariffs.

Wall Street saw mixed results with the S&P 500 stagnant, the Dow marginally up, and the Nasdaq experiencing volatility. Energy and communication sectors weakened, while European shares followed suit with declines. Investors now await comprehensive U.S. payroll data to guide further market moves.

(With inputs from agencies.)