Global Bond Markets Sell Off, US Stock Futures Slide as Traders Reassess Fed Rate Cut Path

Global bond markets are experiencing a significant sell-off as traders reassess the Federal Reserve's interest rate trajectory. This shift comes amid concerns that previous forecasts regarding potential rate cuts may have been overly optimistic. The sell-off is reflected in U.S. stock futures, which have also declined, indicating a broader market reaction to the changing outlook on monetary policy. Analysts suggest that the adjustment in trader sentiment could lead to increased volatility in both bond and equity markets as investors recalibrate their expectations for future rate decisions.