Global Markets Seek Calm After Volatility Jolt

Market volatility, triggered last week, is subsiding but not gone. Investors are looking for reassurance that the real economy remains strong. While U.S. stock markets initially rose, they closed lower on Wednesday due to concerns about the AI sector and a poorly received Treasury auction. Despite this, the auction`s yield was lower than the previous week. Thursday`s 30-year bond sale will further test market sentiment. Focus also remains on the U.S. labor market, with the weekly jobless claims report carrying significant weight as markets anticipate a potential Federal Reserve rate cut. While stock futures are stable and volatility indicators have improved, European and Asian markets are slightly down. Japanese markets, the source of much recent turmoil, are calmer but concerns linger about the Bank of Japan`s stance on interest rates.