All three major US equity benchmarks closed at record highs yesterday, underscoring investor optimism even as bond markets signaled mounting pressure from higher rates.
In Asia, Japan’s Nikkei 225 dropped 2.5% after touching an all-time high on Thursday, with government bond yields surging to fresh records. In Europe, Germany’s 30-year yield climbed to 3.35%, the highest since 2011.
Despite the Fed’s latest rate cut, long-term borrowing costs continued to rise. The 30-year US mortgage rate hit 6.25%, up from 6.10% before the central bank’s decision, while credit card delinquencies reached 12% — their highest level since the global financial crisis.
On the corporate front, Intel surged 23% after unveiling a $5 billion investment from Nvidia. Meanwhile, Roche agreed to acquire Nasdaq-listed 89bio for $3.5 billion, expanding its pipeline in liver disease treatments.
European equities rose about 0.5% on average, while US futures suggested a flat open. The Bloomberg Dollar Spot Index advanced further, building on yesterday’s 0.37% gain..