Global Bonds Selloff Sparks Wall Street Turbulence

A global bond selloff pressured Wall Street stocks, causing mixed results with the S&P 500 and Dow rising, while the Nasdaq fell. U.S. economic data dimmed hopes for near-term rate cuts. European stocks also dipped, alongside treasury yields, as President-elect Trump's potential economic policies raised inflation concerns.

The global bond selloff continued unabated on Wednesday, intensifying pressure on Wall Street stocks and pushing the U.S. dollar higher as strong economic indicators in the U.S. dampened expectations of imminent federal rate cuts.

The benchmark 10-year U.S. Treasury yield surged to 4.73%, marking a high not seen since April 2024. Meanwhile, select stock indices reflected mixed outcomes: the S&P 500 and Dow closed higher, buoyed by sectors such as healthcare and industrials, whereas the Nasdaq ended on a slight decline.

European markets mirrored this downturn, with the pan-European STOXX 600 and various national bourses slipping into the red. Rising treasury yields in Europe, especially Germany and the UK, compounded market strains as investors recalibrated expectations amid Trump's economic strategies potentially boosting inflation.

(With inputs from agencies.)