The S&P 500 has declined for the third consecutive session, pressured by ongoing geopolitical uncertainty and rising US real yields. According to Deutsche Bank strategists via FX Street, these factors are weighing heavily on risk assets, contributing to the recent market softness.
Higher real yields in the US are making equities less attractive, while geopolitical tensions continue to fuel investor caution. This combination has led to a sustained pullback in the benchmark index over the past three trading days.
For Japanese investors, this trend underscores the importance of monitoring global risk factors as they can have significant spillover effects on domestic markets, especially given Japan’s close economic ties with the US.