Global Stocks Struggle Amid Rising Treasury Yields in Year-End Slump

Global stocks fell as U.S. Treasury yields rise, ending a strong year for equities. The S&P 500 still showed impressive annual gains fueled by AI and interest rate cuts. However, concerns about inflation from Trump's policies and higher bond yields subdued the rally.

Global stocks took a hit on Tuesday, largely due to rising U.S. Treasury yields, marking a subdued end to an otherwise prosperous year for equities.

On Wall Street, early gains reversed as the tech sector saw a decline of 1.04%. Top performers such as Palantir Technologies and Nvidia saw their stocks close lower.

This downturn followed a significant two-year growth trend in the S&P 500, driven by advancements in artificial intelligence and expected interest rate cuts. However, rising bond yields tied to economic forecasts and policy concerns tempered the rally.

(With inputs from agencies.)