MSCI’s gauge of stocks across the globe slipped 0.29% to 851.14, while the pan-European STOXX 600 index finished down 0.21%
Global stocks dropped for the second consecutive session while U.S. yields rose on Tuesday amid market uncertainty ahead of the U.S. election as well as the outlook on interest rate cuts.
Democratic Vice President Kamala Harris held a marginal lead of 46% to 43% over Republican former President Donald Trump, as per a Reuters/Ipsos poll, as both candidates vie to capture swing states ahead of November 5.
The benchmark S&P 500 and the Dow closed lower in choppy trading driven by losses in industrials, materials and utilities stocks. The Nasdaq ended higher as investors digested corporate results from companies across sectors in the U.S. economy.
The Dow Jones Industrial Average slid 0.02% to 42,924.89, the S&P 500 tumbled 0.05% to 5,851.20 and the Nasdaq Composite added 0.18% to 18,573.13.
The pan-European STOXX 600 index finished down 0.21%. MSCI’s gauge of stocks across the globe slipped 0.29% to 851.14.
Yields being up is a big headwind, said David Spika, chief markets strategist at Turtle Creek Wealth Advisors in Dallas. We have seen the largest increase post a rate cut in the 10-year in the last 30 years. I think the bond market is telling us don’t be pricing in a whole bunch of rate cuts anytime soon. To expect the Fed to just be cutting rates 50 bps every meeting is not realistic.
The odds that the Federal Reserve will deliver a quarter-point cut at its November 7 meeting are at 92%, while the probability of no rate cut is at 8%, as per CME’s FedWatch tool. Benchmark 10-year Treasury yields were up 2.2 basis points at 4.204%, after earlier hitting 4.222%, the highest level since July 26.