Market Turbulence as Fed Meeting Approaches Amid Global Events

Investor anxiety rises as U.S. Treasury yields and the dollar gain ahead of the Federal Reserve's anticipated interest rate cut. The market also contemplates the effects of a recent earthquake in Japan. Concerns mount over potential disruptions to economic forecasts as markets react globally.

As anticipation builds for this week's Federal Reserve meeting, U.S. Treasury yields and the dollar experienced gains on Monday. Investors are widely expecting an interest rate cut, although the stock markets showed declines. In addition to monetary policy, markets are weighing the repercussions of a 7.6 magnitude earthquake in Japan.

The Federal Open Market Committee's decision, slated for Wednesday, could prove contentious, with speculation of deep divisions among its members. Meanwhile, Japan's economy faces uncertainty following the seismic event. Analysts suggest that the Bank of Japan might postpone its planned rate hike based on the earthquake's aftermath.

A broader look at the global stage reveals that several central banks, including those of Canada, Switzerland, and Australia, are also set to convene, with expectations of holding rates steady. Concurrently, Paramount Skydance's effort to acquire Warner Bros Discovery captures investor interest amid the unstable market conditions.

(With inputs from agencies.)