US stocks looked set to fall in early trading while Treasury yields crossed a symbolic threshold as concerns mounted over the health of the world’s biggest economy.
S&P 500 futures and the dollar dropped in European trading, and though US bonds rose, the yield on 30-year Treasurys briefly topped 5%.
Major figures in finance, meanwhile, voiced caution over the prospects for the American economy: Following last week’s downgrade of US Treasurys by Moody’s, the Bridgewater founder Ray Dalio said that, if anything, “the risks for US government debt are greater than the rating agencies are conveying,” while JP Morgan CEO Jamie Dimon warned that markets were underpricing geopolitical and inflation risks.
