Written by Jordan Finneseth
(Kitco News) – Financial markets experienced a broad sell-off on Wednesday as doubt about future rate cuts crept into the minds of investors, who opted to reduce their exposure to the markets ahead of the expected volatility leading up to the U.S. elections in November.
Rising bond yields and a spike in the DXY also contributed to the weakness, which took a toll on risk assets as investors migrated to the safety of guaranteed income.
“On the macroeconomic front, the 10-year Treasury yield climbed to 4.25%, a peak last seen in July, propelled by strong economic indicators and concerns over the national deficit,” said analysts at Secure Digital Markets. “Concurrently, the US Dollar Index escalated to a year-high, exerting further pressure on risk assets, including cryptocurrencies.”
“The political landscape is also influencing market sentiments,” they added. “Donald Trump’s recent electoral success is viewed positively by traders, given his supportive stance on making the U.S. a leading player in the crypto arena. Conversely, Kamala Harris has taken a more cautious approach, focusing on consumer protection regulations without committing to the same level of industry promotion.”
