Global stock markets faced broad declines on Thursday as rising bond yields, disappointing tech earnings, and trade concerns weighed on investor sentiment.
Nasdaq 100 futures dropped 1.2%, while S&P 500 futures fell 1%, signaling a weak opening for Wall Street.
The technology sector was hit hard after Marvell Technology Inc. saw its shares tumble 15% in premarket trading due to an earnings report that fell short of investor expectations. CrowdStrike Holdings Inc. also declined after issuing a weaker-than-expected earnings outlook.
Chip stocks faced additional pressure after Alibaba Group Holding Ltd. introduced a low-cost competitor to its DeepSeek AI technology, raising concerns about profit margins across the sector.
A global bond selloff extended into Thursday, further unsettling investors. Germany’s 10-year bond yield surged to 2.87%, marking its highest level since October 2023, following the government’s announcement of a large-scale spending plan. Meanwhile, US Treasury yields rose three basis points to 4.31%, and Japanese government bond yields hit their highest levels in over a decade.
Matthew Cairns, a strategist at Rabobank, pointed out that investors remain concerned about the economic impact of a potential trade war, as President Donald Trump has imposed tariffs on imports from Mexico and Canada. While automakers were granted a one-month exemption, fears of retaliatory measures and slower US economic growth are pressuring stock markets.
After starting the day with gains, Europe’s Stoxx 600 index fell 0.5%, reflecting concerns about sharply higher bond yields. Germany’s decision to increase fiscal spending triggered a historic yield spike in German Bunds on Wednesday, leading to a continued bond selloff across the eurozone.
The European Central Bank (ECB) is expected to deliver a 25 basis-point interest rate cut, but analysts remain uncertain about how policymakers will respond to rising government spending pressures.
Currency and Commodity Market Reactions
- The euro held near a four-month high, trading at $1.08.
- The British pound slipped 0.1% to $1.2880.
- Bitcoin rose 0.6% to $90,903.53, while Ether gained 2.5% to $2,290.75.
- West Texas Intermediate (WTI) crude oil increased 0.4% to $66.59 per barrel.
- Gold prices dropped 0.9% to $2,893.50 per ounce, reflecting investor moves into higher-yielding assets.
Investors will be closely watching the US jobs report on Friday, which could influence Federal Reserve interest rate expectations. Other key events include:
- Eurozone GDP report on Friday
- Fed Chair Jerome Powell’s speech in New York on Friday
- ECB interest rate decision on Thursday
