Global Equities Tumble as Economic Worries Mount

Global equities plummeted due to economic concerns, affecting major indexes on Wall Street and European financial stocks. Treasury yields fell, oil futures declined, and the Federal Reserve hinted at a potential rate cut. Key U.S. economic indicators showed a weakening labor market and manufacturing sector, aggravating financial instability.

Global equities saw a significant drop on Thursday, with Wall Street's primary indexes suffering substantial losses. Economic concerns were fueled by U.S. data, leading to a considerable selloff. Simultaneously, financial stocks in Europe experienced their most severe one-day decline since March 2023.

Treasury yields also tumbled following the release of weak economic data. The U.S. two-year to 10-year note yields fell to six-month lows, dipping below 4%. Meanwhile, oil futures finished lower as global supply remained unaffected by fears of a broader Middle East conflict.

The Federal Reserve kept interest rates steady on Wednesday but hinted at a possible cut in September. In contrast, the Bank of England lowered borrowing costs by a quarter-point on Thursday. Additionally, the ISM's manufacturing PMI fell to its lowest level since November, signaling contraction in a crucial economic sector.

(With inputs from agencies.)