Global Stocks Slump Amid Bond Yield Fears and Inflation Worries

Global stocks fell for a second consecutive day on September 29 due to concerns over high bond yields, upcoming U.S. inflation data, and possible volatility at quarter-end. Despite oil prices falling by 40% since their peak, investors remained uneasy.

The third quarter will end on September 30, following three months of significant market shifts. During this period, oil prices rose 40%, U.S. diesel prices hit a record high, and corporate bonds suffered their steepest quarterly decline since 2022. Yields on U.S. and other government bonds reached their highest levels in 20 years.

Factors that could affect investors in the fourth quarter include concerns about funding the development of artificial intelligence and its potential consequences, further monetary tightening by the Federal Reserve, the upcoming U.S. midterm elections, and the U.S. war with Iran. The U.S. corporate earnings season, which begins in the coming weeks, will offer insight into the health of businesses.