Global equity markets declined on Tuesday as rising long-term bond yields weighed on growth-sensitive sectors, while the Swiss Market Index eked out modest gains driven by pharmaceutical heavyweights.
The Nasdaq 100 fell 1.49% to 29,548 points at the open, extending losses after U.S. 30-year Treasury yields climbed to 5.321%, the highest level since 2007. The Dow Jones Industrial Average and S&P 500 also slipped 0.2% and 0.50%, respectively. European benchmarks declined, with the Stoxx 600 down 0.6%, while the DAX and CAC 40 each lost 0.6%. In Asia, the Nikkei 225 dropped 1.6%, though Seoul’s Kospi advanced more than 3%.
In Switzerland, the SMI closed 0.13% higher at 14,321 points, supported by gains in Roche (+1.45%) and Novartis (+1.8%). Nestlé added 0.6%, while Alcon rose 2.5%. Cyclical stocks lagged, with ABB down 3%, Holcim shedding 2.2%, and Sika falling 2.1%. Mid-cap stocks diverged, with Basilea surging 10% after raising full-year guidance, while Huber+Suhner tumbled 11% on weak margin performance.
U.S. tech stocks extended declines, with Nvidia down 2.2% and Micron, Sandisk, and Marvell Technology falling between 4.9% and 6.8%. Baidu dropped nearly 9% after reporting weaker-than-expected quarterly profit, while Fabrinet slumped more than 18% on disappointing datacom revenues. Home Depot shares rose 2% following better-than-expected earnings.
Oil prices advanced, with Brent crude up 0.32% to $91.23 per barrel and WTI crude rising 0.7% to $85.06. Gold edged lower, with spot prices declining 0.5% to $4,391.14 per ounce, pressured by rising yields and Middle East tensions. U.S. gold futures for December fell 0.6% to $4,446.70.
Analysts cited concerns over prolonged oil supply disruptions in the Middle East and elevated long-term yields as key headwinds for equities. Commerzbank’s Norman Liebke noted that normalization of oil shipments from the Gulf region appeared increasingly unlikely, while CG Asset Management’s Emma Moriarty highlighted the dual drag from geopolitical risks and rising rates on equity valuations.
