"Stocks fell sharply after stronger-than-expected US economic data sparked a bit of a shift in Fed rate cut expectations, sending bond yields higher. Toppy markets after the record high on Monday met some indigestion of Nvidia's $100bn 'investment' in OpenAI, worries about a government shutdown and then a focus on yields that spooked equity markets. Inflation data today is key - a hot print would further spook the market."
"The tariff news ought to add to the bearish narrative we've seen take hold in equity markets this week, but so far European equity markets are rising and US futures are a bit higher. Maybe weaker euro/sterling, maybe just tariff noise can be ignored? Oil prices were at their highest in almost two months, underpinning strength in Shell and BP, which are index heavyweights."
Stocks weakened after US yields rose following stronger-than-expected economic data, shifting some Fed rate-cut expectations. New tariffs announced by Trump — including 100% on branded pharmaceuticals and high levies on heavy trucks, cabinets, vanities and furniture effective 1 October — added policy uncertainty and pressured some exporters. Nvidia's reported $100bn 'investment' in OpenAI unsettled tech stocks. Oil reached near two-month highs, supporting heavyweight energy names such as Shell and BP. The 10-year Treasury yield climbed to about 4.2% and 10-year TIPS yields rose above 1.8%, while the dollar strengthened to a three-week high. Upcoming inflation data is a key near-term risk.
Read at London Business News | Londonlovesbusiness.com
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