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Stocks slide and dollar hits two-month low after soft U.S. data
Thirty-year Treasury yields climbed to their highest level since 2007 as worries about the U.S. fiscal outlook and heavy AI-linked corporate debt issuance pushed rates higher.
U.S. stocks closed lower on Monday and the dollar fell to a two-month low against the euro after soft U.S. economic data, including an unexpected drop in retail sales, led investors to scale back expectations for an imminent Federal Reserve rate move, according to Reuters.
Treasury yields rose sharply, with 30-year yields reaching the highest level since 2007. Reuters linked the move to concerns over the U.S. fiscal trajectory and heavy AI-related corporate debt issuance, both of which pressured yields higher.
Market sentiment also reflected caution ahead of major retailer earnings, with investors watching Home Depot, due Tuesday, and Walmart, due Thursday, for signals about consumer health. Reuters said volume is often weaker in August as many traders take vacations.
Broader risk appetite was further constrained by uncertainty about the economic impact of the Iran war. In commodities, oil prices settled higher on Monday on global supply worries, with U.S. crude up 2.74% to $84.66 a barrel and Brent up 2.59% to $90.81 per barrel.
Latest closeWTI crude $82.40 ▲1.4%|Brent $88.59 ▲1.8%