Debate Moves Markets: Harris vs. Trump Shakes Investor Confidence

U.S. stock futures fluctuated while the dollar weakened and bond prices surged following a contentious presidential debate between Vice President Kamala Harris and former President Donald Trump. Discussions on key issues like abortion, the economy, and immigration left markets jittery ahead of important U.S. inflation data, impacting Federal Reserve policy expectations.

U.S. stock futures wavered, the dollar weakened, and bond prices surged as markets responded to a contentious presidential debate where Vice President Kamala Harris put Republican Donald Trump on the defensive.

The candidates clashed over pivotal issues like abortion, the economy, immigration, and Trump's legal troubles, leaving investors anxious ahead of upcoming U.S. inflation data critical to Federal Reserve policy.

Bond yields dropped as markets interpreted Harris' robust debate performance as a sign of potential interest rate cuts, while investor sentiment suggested higher spending and rates if Trump clinched victory. Ten-year Treasury yields hit their lowest point since June 2023.

(With inputs from agencies.)