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Investment Daily: US stocks fell before the Fed policy decision

29 April 2026

Key takeaways

  • US stocks fell; Treasury yield curve flattened.
  • European stocks and government bonds fell.
  • Asian stocks mostly declined.

Markets

US stocks fell on Tuesday, as renewed concerns about AI profitability weighed on tech shares ahead of major earnings releases. The S&P 500 ended down 0.5%.

US Treasury yield curve flattened modestly amid higher oil prices before the Fed policy decision. 10-year yields edged up 1bp to 4.35% while 2-year yields rose 4bp to 3.84%.

European stocks traded modestly lower on Tuesday as investors monitored geopolitical developments. The Euro Stoxx 50 lost 0.4%. The German DAX slid 0.3% and the French CAC fell 0.5%. In the UK, the FTSE 100 edged up 0.1%.

European government bonds fell. 10-year German bund yields rose 4bp to 3.07% and 10-year French bond yields rose 3bp to 3.72%. In the UK, 10-year gilt yield rose 3bp to 5.00%.

Asian stock markets mostly fell on Tuesday, with corporate earnings and major central banks’ policy decisions remaining in focus. Japan’s Nikkei 225 dropped 1.0% after the Bank of Japan’s policy decision, whereas Korea’s Kospi extended recent rallies, closing 0.4% higher. Elsewhere, China’s Shanghai Composite shed 0.2%, and Hong Kong’s Hang Seng lost 0.9% on tech share weakness. India’s Sensex slid 0.5%, led by losses in bank stocks following tightened capital rules.

Crude oil prices extended gains on Tuesday. WTI crude for June delivery settled 3.7% higher at USD99.9 a barrel.

Key Data Releases and Events

Releases yesterday

In the US, the Conference Board Consumer Confidence Index unexpectedly rose to 92.8 in April from a revised 92.2 in March, driven by modest improvements in consumers’ perception of the labour market, despite ongoing concerns about higher oil prices.

The Bank of Japan kept its policy rate unchanged at 0.75%, raising inflation forecast on ongoing geopolitical concerns and signalling a possible rate hike in summer.

Releases due today (29 April 2026)

In the US, the Fed looks set to keep policy on hold given upside inflation risks and lingering labour market concerns.

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