Global markets took a hit on Thursday as U.S. stocks tumbled due to rising bond yields, with the Dow Jones Industrial Average dropping over 400 points. This led to a domino effect in Asian markets, with Tokyo’s Nikkei 225, Hong Kong’s Hang Seng, and Shanghai’s Composite index all experiencing losses.
The negative trend continued in Australia, South Korea, Taiwan, and India, with major indices in these countries also sliding. According to Mizuho Bank, the unexpected rise in global inflation is causing concern among investors, leading to a sell-off in asset markets.
In the U.S., the S&P 500 and Dow industrials saw declines, with airline stocks like American Airlines Group taking a hit after revising profit forecasts. ConocoPhillips also made headlines with its acquisition of Marathon Oil in a multi-billion dollar deal.
The surge in longer-term Treasury yields added to the market’s woes, with the 10-year yield climbing to 4.61%. Traders are closely watching the Federal Reserve’s next moves regarding interest rates, as inflation remains a key concern.
Despite these challenges, some sectors like artificial-intelligence technology continue to perform well, with companies like Nvidia reporting strong profits. The overall economic outlook remains mixed, with uncertainties surrounding consumer spending and inflation.
As global markets navigate these turbulent times, investors are advised to stay cautious and monitor developments closely to make informed decisions.