Global Market Volatility: Stocks Slip, Treasury Yields Rise Amid Rate Cut Speculation

Global shares declined while U.S. Treasury yields rose as investors await key economic data. Wall Street dipped, with energy stocks gaining. Treasury yields increased, fueled by possible Federal Reserve interest rate cuts. The MSCI World Equity Index fell after five days of gains. European stocks also experienced declines.

Global shares took a downturn on Monday, with U.S. Treasury yields climbing as investors paused after five consecutive sessions of market gains. As anticipation builds around key economic data potentially influencing Federal Reserve interest rate cuts, equities, particularly utilities, real estate, and industrial stocks, saw prices drop on Wall Street. Energy stocks emerged as the day's leaders, buoyed by a 1% rise in Brent crude prices.

The Dow Jones Industrial Average dropped by 0.69%, while the S&P 500 and Nasdaq Composite slipped 0.55% and 0.65%, respectively. After recording gains over the past five trading days, U.S. markets mirrored declines in Europe, where defense stocks contributed to the pan-European STOXX 600 index's 0.28% decrease.

Amid rising U.S. Treasury yields, the yield on the benchmark 10-year note increased by 6.4 basis points to 4.083%. The 2-year note yield, reflecting Fed rate expectations, rose 3.7 basis points to 3.528%. With investors closely watching developments, Bank of Japan comments and global economic indicators, such as the U.S. manufacturing contraction data, informed market movements.

(With inputs from agencies.)