Global stocks declined as Wall Street's major indexes fell following the European Central Bank's decision to cut interest rates for a fourth time this year. The move sent gold prices down from a five-week high. European stocks also ended lower amid concerns about a struggling economy and political risks.
The Swiss franc weakened after the Swiss National Bank announced a half-point rate cut, marking the largest reduction in nearly a decade. Meanwhile, the U.S.
Labor Department reported an unexpected 0.4% increase in the producer price index, surpassing consensus expectations, which raised the prospect of a Federal Reserve rate cut. The Dow Jones, S&P 500, and Nasdaq experienced declines, while the U.
S. dollar rose. Oil prices dropped on ample supply forecasts countering optimism about potential U.
S. interest rate cuts. Additionally, gold and commodities faced downward pressure due to profit-taking ahead of the Fed meeting.
(With inputs from agencies.).
Central Banks Dominate Markets Amid Rate Cuts and Inflation Concerns
Central Banks Dominate Markets Amid Rate Cuts and Inflation Concerns Global stocks declined as Wall Street's major indexes fell following the European Central Bank's decision to cut interest rates for a fourth time this year. The move sent gold prices down from a five-week high. European stocks also ended lower amid concerns about a struggling economy and political risks.The Swiss franc weakened after the Swiss National Bank announced a half-point rate cut, marking the largest reduction in nearly a decade. Meanwhile, the U.S. Labor Department reported an unexpected 0.4% increase in the producer price index, surpassing consensus expectations, which raised the prospect of a Federal Reserve rate cut.The Dow Jones, S&P 500, and Nasdaq experienced declines, while the U.S. dollar rose. Oil prices dropped on ample supply forecasts countering optimism about potential U.S. interest rate cuts. Additionally, gold and commodities faced downward pressure due to profit-taking ahead of the Fed meeting.