A push higher by global stocks ran out of steam Friday as US bond yields rose in a signal that investors see the US Federal Reserve pausing after an expected interest rate cut next week.
Wall Street had opened higher on AI optimism and European markets were trading higher into the afternoon.
But “earlier gains have drifted away as US Treasury yields strengthen,” said Chris Beauchamp, Chief Market Analyst at online trading platform IG.
“Yields rose to their highest levels in over two weeks as markets brace for the Federal Reserve’s final meeting of the year, reflecting concerns over sticky inflation,” he added.
The latest US consumer price index data released this week showed prices ticked higher in November and the wholesale data also showed stubborn inflationary pressures.
There is also growing concern over the inflationary pressures from president-elect Donald Trump’s pledges to cut taxes and impose tariffs, as inflation …