Mixed Global Stock Markets Amid Economic Growth Data and Fed Rate Speculations

Global stock indexes showed mixed results on Thursday as the S&P 500 improved following a previous selloff. Treasury yields decreased despite robust U.S. economic growth figures, leading to expectations of a Federal Reserve interest rate cut. The Japanese yen also rallied, affecting the USD-JPY exchange rate.

World stock indexes were mixed on Thursday, with the S&P 500 higher after the previous day's selloff, and Treasury yields falling as solid U.S. economic growth data did not influence expectations for a Federal Reserve interest rate cut. The Japanese yen continued its rally against the dollar, anticipating the Bank of Japan's upcoming meeting.

The U.S. dollar trimmed losses following stronger-than-expected GDP data for the second quarter, showcasing growth in consumer spending and business investment, while inflation pressures decreased.

Markets are currently pricing in a September rate cut, according to CME's FedWatch Tool, despite minimal expectations for a cut at the Fed's July meeting. CEO Jay Hatfield of Infrastructure Capital Advisors described the situation as a potential 'Goldilocks' scenario where GDP remains stable but prompts a delayed Fed rate cut.

Major U.S. indices saw gains: the Dow Jones Industrial Average rose 254.88 points, the S&P 500 gained 23.22 points, and the Nasdaq Composite gained 32.25 points. Notably, Tesla shares increased by 3.3%, and International Business Machines shares jumped 5% after reporting positive revenue results.

Conversely, Wednesday saw a sharp drop in stocks due to weak quarterly reports from Alphabet and Tesla. MSCI's global stock gauge and STOXX 600 index also declined. The U.S. 10-year Treasury yield fell by 6.5 basis points, marking its biggest decline in two weeks.

Chinese markets faced downturns despite Beijing's latest easing step. Chinese blue-chips slid 0.6%, hitting a five-month low, and Hong Kong's Hang Seng plunged 1.7%. China's surprise interest rate cut did little to alleviate concerns about its economic slowdown. Iron ore prices fell nearly 1% amid these economic jitters.

(With inputs from agencies.)