US and global equity markets fell for the second consecutive session as persistently high bond yields and inflation concerns weighed on investor sentiment. Falling crude oil prices provided some grounds for optimism.
US and global equity markets fell for the second consecutive session on 29 September. The decline was attributed to growing investor concerns about persistently high bond yields, upcoming inflation data and market volatility at the end of the quarter. Falling crude oil prices were cited as a factor that partly eased the bearish outlook.
Markets were highly volatile in the third quarter. Crude oil prices rose 40% during the period, while corporate bonds recorded their steepest quarterly decline since 2022. Government bond yields reached 20-year highs, although equity indexes remained near record levels. In the fourth quarter, markets are expected to focus on funding trends for AI development, monetary tightening by the Federal Reserve and policy developments in the US and China.
Documents related to Anthropic's IPO reportedly indicate that, despite a sharp increase in revenue, the company has incurred substantial operating losses and is assuming a valuation of more than $2 trillion. The possibility of price competition with Chinese AI models has also been identified as a potential challenge.
Consumer confidence has fallen to its lowest level since 2014. While nominal growth remains solid, deterioration in consumer sentiment could affect the outlook. Attention is also turning to indicators scheduled for release on 30 September, including Japan's retail sales and the final US GDP figure.