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US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Soybean Futures Slip as Traders Await Trump-Xi Trade Signals 
UK PM Burnham to Unveil Economic Vision at Labour Conference 
Dollar Falls as Oil Eases, Yen Jumps on Intervention Signals 
Fed Unveils Stablecoin Rules Under GENIUS Act 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
Wall Street Ends Flat as Oil, Treasury Yields and Fed Jitters Rattle Markets 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
Japanese Yen Rebounds as Trump Flags Currency Weakness 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
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The U.S. stock market has officially entered a correction, with the S&P 500 plunging over 10% from its February 19 high. The Nasdaq Composite also confirmed its correction last week. This downturn has erased $5 trillion in market value, marking a stark shift from the bullish sentiment earlier in the year.
Historically, market corrections—defined as declines of at least 10%—are common. Since 1929, the S&P 500 has seen 56 corrections, with only 22 turning into bear markets. On average, corrections result in a 13.8% drop, far less than the 35.6% average decline of bear markets. The current correction has lasted 22 days, with historical data suggesting an average of 115 days.
Market uncertainty has been fueled by ongoing tariff disputes, inflation concerns, and economic slowdown fears. Investors worry that escalating trade tensions could trigger a recession, eroding confidence in the so-called "Trump put"—the expectation that policies will support the stock market.
In response, investors are flocking to safe-haven assets. The yen has surged 6.5% this year, gold hit record highs with a 13% gain, and U.S. Treasury yields have fallen as demand for bonds rises. Defensive sectors like healthcare and consumer staples have outperformed.
Investor sentiment has soured, with the AAII Sentiment Survey showing pessimism at a two-year high. Institutional investors are cutting equity exposure, while volatility has spiked, with the VIX at a seven-month high.
Tech stocks, particularly the "Magnificent Seven," have taken a hit, with Tesla down 33% since the market peaked. As risk appetite wanes, this correction may shift market leadership toward more defensive sectors.
