Global equities experienced broad-based declines as rising nominal and real yields exerted pressure on stock markets worldwide, according to Deutsche Bank’s Jim Reid [1]. In the United States, the 10-year Treasury yield increased by 4.8 basis points to reach a post-2023 high of 4.80%, while Japan’s 10-year yields surpassed 3% for the first time in 30 years [1]. These yield increases contributed to notable losses in major equity indices: the S&P 500 fell by 0.71%, the Stoxx 600 by 0.56%, the Nikkei by 2.95%, and the Kospi by 3.79% [1].
US technology shares underperformed, with the Philadelphia Semiconductor Stock Exchange Index dropping 2.14%, the Nasdaq declining 1.03%, and the Mag 7 index falling 0.72% [1]. European markets saw more moderate declines, with the FTSE 100 down 0.32%, the CAC 40 down 0.39%, and the DAX underperforming with a 1.10% loss [1]. Notably, European markets closed before news of new US strikes against Iran, which may have further influenced sentiment [1].
Asian markets continued the downward trend, with the S&P/ASX 200 falling 1.04%, the CSI 300 down 1.25%, the Shanghai Composite off 0.82%, and the Hang Seng lower by 0.96% [1]. Stronger-than-expected GDP data in Australia reinforced expectations of another Reserve Bank of Australia rate hike later this year, adding to market pressures [1].
Futures for major US and European indices pointed to continued weakness, with S&P futures down 0.10% and Nasdaq futures off 0.26% following the previous night’s sell-off [1].
CONCLUSION
Rising global yields have triggered significant declines across US, European, and Asian equity markets, with technology and semiconductor stocks particularly hard hit. Market sentiment remains negative, and futures indicate the potential for further weakness in the near term.