“The global stock market takes a tumble as investors grapple with the aftermath of a Wall Street plunge fueled by surging yields and a mixed bag of earnings reports, setting the stage for a potentially volatile period ahead.”
Shares in Europe and Asia have fallen after Wall Street suffered losses due to tightening bond yields. Germany’s DAX and France’s CAC 40 both saw significant drops, while the FTSE 100 in the UK also fell. The S&P 500 and Dow Jones Industrial Average futures also declined. Big Tech stocks experienced heavy losses, dragging down the Nasdaq composite, while the Dow industrials also fell. The 10-year Treasury yield has risen back up towards 5%, causing concern for the stock market. In Asian trading, the Nikkei 225 and Kospi both saw declines, while the Hang Seng in Hong Kong and the Shanghai Composite index had mixed results. The S&P/ASX 200 in Sydney and the SET in Bangkok also suffered losses. Rising Treasury yields have been impacting the stock market since the summer, slowing the overall economy and putting pressure on the financial system. Internet-related, technology, and high-growth stocks have been particularly affected. Alphabet, the parent company of Google and YouTube, reported stronger profits than expected but saw its stock fall due to concerns about a slowdown in growth for its cloud-computing business. Microsoft, on the other hand, saw its stock rise after reporting stronger profit and revenue for the summer. High interest rates and yields have also impacted the housing market, and the Federal Reserve is trying to balance cooling inflation without causing a deep recession. Preliminary US economic growth data for July-September is due later on Thursday. In the oil market, US benchmark crude oil and Brent crude both experienced losses. US oil has been volatile amid concerns about the Israel-Hamas war and potential disruptions in oil supplies. In currency dealings, the US dollar strengthened against the Japanese yen, while the euro weakened.