RATE CUT IMPACT Global investors cautious; UAE, GCC markets mixed

Global markets moved cautiously after the US Federal Reserve's second consecutive rate cut, as Chair Jerome Powell's warning that another move in December was "far from guaranteed" unsettled investors.

- BY JUSTIN VARGHESE

The initial reaction was mixed. US Treasury yields climbed, with the 10-year note rising above 4 per cent, marking its biggest single-day jump in nearly five months. The US dollar strengthened, while equities fluctuated through the day before stabilising later.

The Nasdaq Composite briefly slipped but closed at another record high, fuelled by strong gains in AI-focused stocks such as Nvidia. The S&P 500 ended largely unchanged, while the Dow Jones Industrial Average closed slightly lower.

Dollar rebounds