The markets in Asia and Europe were down overnight as the shockwaves from the big drop in the US stock market reverberated around the world. The Dow plummeted 832 points Wednesday, the third-worst point decline in history. Tech stocks were hit especially hard. The rise in yields on US Treasury bonds, now near a seven-year high, was blamed for the massive sell-off. Stocks tend to slump after sharp spikes in yields because that makes bonds, which are seen as safer assets, more appealing. Wall Street is also reacting to the rise in interest rates. The Federal Reserve is steadily raising rates to keep inflation in check and make sure this red-hot economy doesn’t overheat.
Source: CNN News
