Global stocks fell on Wednesday as the dollar strengthened, following Federal Reserve Chair Jerome Powell’s cautious remarks on U.S. interest rates.
Powell avoided committing to the sharp rate cuts investors expect in the coming months, dampening market sentiment. Traders still see a 92% chance of an October cut, according to CME FedWatch, but Powell stressed the need to balance inflation risks with a softening jobs market.
In Europe, defence stocks outperformed after U.S. President Donald Trump said Ukraine could reclaim all territory occupied by Russia. Rheinmetall, Hensoldt, and SAAB gained between 2 per cent and 4.8 per cent, even as losses in financials dragged the STOXX 600 down 0.4 per cent.
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The dollar rose broadly, pressuring the euro, pound, and yen. U.S. Treasury yields eased slightly, with the 10-year note at 4.106 per cent and the 30-year at 4.717 per cent.
Economic data added to caution. S&P Global’s PMI showed U.S. business activity slowing for the second month, with firms struggling to pass higher costs to consumers.
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Commodities were mixed: gold climbed 0.25 per cent to $3,772 per ounce, just shy of Tuesday’s record, while Brent crude rose 0.3 per cent to $67.86 a barrel after delays in Kurdish oil exports eased oversupply fears.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
