US stocks fall
U.S. stocks fell from their record highs as strong dollar gains and rising Treasury yields weighed on risk appetite, while global uncertainty in Europe and Japan amplified caution among investors.
The S&P 500 and Nasdaq both edged lower after a profit-taking wave hit mega-cap techs. The dollar index (DXY) extended its rally, supported by diverging monetary outlooks between the Federal Reserve and the European Central Bank.
A new Federal Reserve Bank of New York survey revealed that one-year inflation expectations rose to 3.4% from 3.2%, while three-year expectations climbed to 3.0%. The data reflected lingering inflation concerns despite recent moderation in energy and shelter costs.
Persistent inflation fears continue to weigh on market sentiment even as Fed officials signal a cautious approach to rate cuts. Analysts noted that trade tensions and tariff-related risks could resurface, adding pressure to global supply chains.
Traders are now watching the upcoming U.S. CPI release and Fed speeches for clarity on the policy path. Until inflation convincingly trends lower, risk assets may stay range-bound as investors balance between growth optimism and rate uncertainty.
Disclaimer: Market data as of Oct 8, 2025. Always verify live prices before trading decisions.
