- Stocks declined as treasury yields increased, traders wagered that the federal reserve would keep raising interest rates until inflation was overcome, and investors analyzed how well-prepared corporations were for a variety of challenges in the most recent earnings reports.
- Europe's Stoxx 600 index dropped more than 1%, with Adidas experiencing its biggest decline in more than two years after lowering its operating margin and sales projections. Futures for wall Street stocks declined. Twitter experienced a drop of up to 16% in premarket trading following reports that officials in the Biden administration are debating whether the US should evaluate any of Elon Musk's business undertakings for national security reasons, including the acquisition of the social media company.
- Investor focus is still firmly fixed on the UK, where the conservative party is determined to put an end to the dismal premiership of Liz Truss by holding a quick leadership election. Following concerns that a comprehensive fiscal plan may be delayed by the selection process, the pound fell more than 1%, and yields on 10-year UK government debt increased.
- As government yields increased, the dollar increased as well. The yield on the 10-year US Treasury note increased to its highest level since 2007 as speculators factored in a higher peak fed policy rate. The yen lost more ground beyond the carefully watched 150-to-dollar mark, fueling expectations that additional assistance will be required to sustain the Japanese yen.
