U.S. and global stocks fell yesterday as investors reacted to weak service-sector data (ISM services PMI slipped to 50.1), renewed tariff pressure, and a mixed batch of corporate earnings.
On Monday, key stock indices advanced. Although there was a mild pullback on Tuesday, the decline was limited, allowing all three major benchmarks to retain modest gains for the week so far.
The bond market responded as anticipated, with yields on short-term Treasuries rising while those on longer-term maturities declined. This divergence indicates that investors are expressing diminished confidence in imminent rate cuts and heightened concerns regarding economic growth.
Market attention is sharply focused on potential late-breaking trade developments as the deadline for President Trump's tariff measures approaches this Thursday.