Market Mood: Megacaps Steer Equities Amid Consumer Uncertainty

Global equities saw a rise on Monday attributed to megacap stock rallies, despite a dip in U.S. consumer confidence and anticipation of fewer Federal Reserve rate cuts in 2025. Yields on U.S. Treasury notes climbed, influenced by economic concerns and potential policy shifts. Currency and commodity markets experienced varied movements.

Global equity markets witnessed an upward trend on Monday, primarily driven by rallies in Wall Street's megacap stocks like Nvidia Corp and Broadcom Inc, even as U.S. consumer confidence took a hit, leading to expectations of reduced rate cuts in 2025.

The U.S. consumer confidence index dropped in December, while orders for durable goods fell, adding to investor concerns. Despite these factors, major indexes such as Nasdaq and the S&P 500 managed to remain buoyant, bolstered by robust performances from key stocks.

U.S. Treasury yields climbed significantly, reflecting market adjustments to anticipated Federal Reserve policies. In the currency markets, the dollar advanced while commodity prices like oil and gold edged lower, influenced by a stronger dollar and high yields.

(With inputs from agencies.)