Wall Street Dwindles as US Treasury Yields Weigh on Sentiment
Wall Street dwindled as higher US Treasury yields weighed on investors’ sentiment. Top semiconductor and AI stocks were also affected as global sentiment shifted toward risk-free assets.
Renewed US-Iran hostilities lifted oil prices, reviving inflation concerns and strengthening expectations of further monetary tightening across global markets.
Higher Treasury yields weighed on Wall Street, where the Dow Jones closed 0.70% lower, the S&P 500 fell 0.33%, and the NASDAQ ended the session down 0.12%, with attention now turning to US manufacturing and job opening data.
The same energy shock reinforced expectations of additional European Central Bank rate hikes, pushing the Euro Stoxx 50 down 1.01%, while the FTSE 100 was closed for the Summer Bank Holiday.
That pressure has carried into Asia, although improving Chinese manufacturing activity is providing some offset. The Hang Seng Index is trading 1.00% lower amid inflation and tightening concerns, compounded by renewed weakness in the property sector.
Elsewhere, the Nikkei 225 is down 0.10%, while the ASX 200 is trading 0.23% lower as rising US yields and caution ahead of Australian second-quarter GDP data curb risk appetite.
Local equities closed lower on Monday, with the All Share Index declining 1.62% to 116 257 points and the Top 40 falling 1.73% to 108 760 points.
Resources led losses, retreating 3.82%, pulled lower by softer precious metals prices (-4.53%), which have been pressured by heightened inflation expectations, as oil prices climbed higher after the US and Iran recently exchanged fire.
Financials and Industrials declined 0.65% and 0.36%, respectively, as the risk-off mood pulled some money away from emerging markets.
The Johannesburg Stock Exchange (JSE) is set for a softer open this morning, as negative momentum is likely to carry over into the new session, weighed down by declines across Asian markets and weaker developed-market futures.
Tencent’s 2.34% drop is a direct headwind for Naspers and Prosus, while a 0.23% retreat in Australia’s Metals and Mining Index signals pressure on diversified miners.
On the commodities front, firmer copper and zinc prices may offer some cushion, though the broader tone remains tilted to the downside Tesla Tokenised bStocks Climbs 3.64% as Trading Volume Spikes
