- Stocks and bonds fell after a tech-fueled rally faded, and investors returned to fretting about inflation and bond volatility.
- US stock futures fell alongside Europe's Stoxx 600 benchmark, as tech stocks relinquished some of Monday's gains.
- The release of the US inflation report on Thursday and the start of the earnings season on Friday have kept investors on the sidelines. At the same time, many investors are preparing to absorb Tuesday's tsunami of debt supply, which is anticipated to total at least €43.2 billion ($47 billion), surpassing the previous record set in 2023.
- BlackRock warned about the hazards of debt-fueled government expenditure in an election year, as government bonds fell in supply from countries such as the United Kingdom, Italy, and Belgium.
- The US benchmark 10-year yield remained over 4%, a level former bond king Bill Gross labelled "overvalued," despite rising 17 basis points this week as strong labor-market data prompted traders to reduce bets on quick Fed easing. Long-dated gilts were among the largest losers in Europe after the government issued 2.25 billion pounds ($2.9 billion) in 20-year debt.
- Oil rebounded from its biggest decline in over a month on evidence of a weaker physical market, including a significant price cut by OPEC+ leader Saudi Arabia.
