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17/07/24
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Global Stocks Lower on Possibility of US Trade Curbs
On Wednesday, global stock indexes mostly dropped as Wall Street was pushed lower by the possibility of U.S. trade curbs.
Treasury yields were higher as John Williams, the New York Federal Reserve President recognized progress in disinflation but added that he wanted to see more improvement before reducing interest rates, reducing the odds of a rate cut in July even further.
According to CME Group’s FedWatch tool, a rate cut in September is still seen as having a 98% chance.
The tech-heavy Nasdaq Composite fell 323.94 points, or 1.72%, to 18,185.40, while the benchmark S&P 500 equity benchmark index declined 50.70 points, or 0.90%, to 5,616.01.
Stocks of chipmaker fell after it was reported that the United States was considering restricting exports of technology to China, together with lukewarm messages by Republican presidential nominee Donald Trump about defending Taiwan, a key production hub.
MSCI’s index of global stocks dropped 4.16 points, or 0.50%, to 827.13.
Shares of AI chipmaker Nvidia dropped close to 6% in early trading after the Asian session was rocky for Taiwan’s TSMC, which closed down 2.4%.
Earlier this week, investors were cautiously optimistic about a second U.S. presidency for Donald Trump, who is running against incumbent Democrat Joe Biden in the presidential election.
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