In the midst of a stock-market selloff, there were signs on Wednesday that the situation was starting to stabilize, helped by a slight decrease in bond yields. The mood among investors remained cautious, with Benjamin Picton from Rabobank stating that although it is hoped that the data will continue to exceed expectations, for now, the market seems to be struggling. Stock indexes such as the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average remained relatively unchanged. Treasury yields, however, experienced a slip, with the 10-year yield decreasing to 4.515%, after reaching its highest level since October 2007 on Tuesday.
The dollar continued its rally, as the WSJ Dollar Index saw a slight increase against a basket of currencies. This marked the index’s sixth consecutive trading session of gains. The Cboe Volatility Index, also known as Wall Street’s fear gauge, retraced after reaching 19.50 on Tuesday, indicating a potential rise in fear. Oil prices, on the other hand, rose due to ongoing concerns about supply. Brent crude, the international oil benchmark, approached $94 a barrel, leading to advancements in energy stocks. While European stock indexes edged higher, most Asian ones saw positive movements.
Overall, the stock-market selloff began to show signs of easing as bond yields slightly retreated. The cautious mood among investors persisted, leading to little change in major stock indexes. While treasury yields slipped, the dollar continued its rally, and the fear gauge retraced from its recent high. Oil prices rose due to supply concerns, resulting in advancements in energy stocks. European stock indexes edged higher, and most Asian ones also experienced positive movements.