September 3, 2025 — Global markets staged a tentative rebound today, yet investors remain cautious amid weak U.S. employment figures, soaring bond yields, and geopolitical undercurrents triggered by China’s grand military display.
In the U.S., soft job openings data sent shivers through markets: weekly figures plunged to a 10-month low, and, for the first time since the pandemic, there were more unemployed individuals than vacancies. Still, tech stocks staged a comeback that lifted both the Nasdaq and S&P 500, driven in part by a strong performance in Alphabet following a favorable legal decision.
Meanwhile, global bond markets showed startling volatility. U.S. 30-year Treasury yields climbed above 5%, propelled by concerns over soaring public debt, impending fiscal défis, and central bank independence. Comparable long-dated bond yields in Japan, Germany, France, and the UK also rose to multi-decade high levels.
Gold hit new all-time highs—surpassing US $3,500 per ounce—as investors sought safety amid economic unease and escalating geopolitical tensions, especially following China’s extensive military parade.
In Europe, elevated inflation figures reinforced signals from ECB board member Isabel Schnabel, suggesting the European Central Bank may resist cutting interest rates in the near term.
Turning to Asia, Beijing’s military showcase proved as much economic messaging as it was martial posturing. The yuan strengthened unexpectedly—a calculated tactic to support domestic demand, encourage capital inflows, and smoothen friction in U.S.–China trade talks. China’s private services sector also showed signs of life, with growth hitting a 15-month high in August and the composite PMI rising to 51.9—its strongest since November 2024.
