Global Stocks Slide Amid Rising U.S. Treasury Yields

Global stocks fell for a third consecutive session as rising U.S. Treasury yields prompted profit-taking. All major U.S. indexes experienced sharp losses, with significant declines in consumer discretionary sectors. The recent rise in bond yields has affected stock market valuations and driven investor shifts towards fixed income.

Global stocks took a hit for the third day running on Monday, as the rise in U.S. Treasury yields led to profit-taking after a robust year for equities. Wall Street's major indexes saw steep drops, with all 11 S&P 500 sectors finishing in the red, led by consumer discretionary stocks.

The surge in the 10-year U.S. Treasury yield above 4.5% has sparked concerns over stock market valuations, following the Federal Reserve's announcement on December 18 regarding a more measured approach to interest rate cuts. Jim Barnes of Bryn Mawr Trust highlighted a shift from equities to fixed income, with the bond market becoming increasingly attractive amidst rising yields.

Monday's decline saw the Dow Jones Industrial Average dip by 418.48 points, while the S&P 500 and Nasdaq Composite also recorded losses. The day's drop marked an unusual occurrence, with the S&P 500 seeing two declines in the year's final trading days—a first since 1952, according to Bespoke Investment Group.

(With inputs from agencies.)