Global Markets-Asian markets tumble as US-Iran fighting lifts oil and bond yields
SPY•Wall Street falls as Fed cut bets fade
Overnight on Wall Street, the S&P 500 .SPX slipped 0.7% and the Nasdaq Composite .IXIC fell 1% as a surge in government bond yields weighed on equities.
The declines came as data from the Institute for Supply Management released on Tuesday showed U.S. manufacturing activity moderated in August amid a slowdown in new orders, but remained in expansionary territory.
Traders believe that the Federal Reserve is likely to lift interest rates at its next meeting in two weeks, though a hike is not certain.
Fed funds futures are pricing an implied 67% probability of a 25-basis-point increase to benchmark borrowing costs at the U.S. central bank's two-day meeting ending on September 16, compared to a 39.6% chance a week ago, according to the CME Group's FedWatch tool.
Gold was down 0.8% at $4,295.70 an ounce, while bitcoin slipped 0.6% to $76,979.55 and ether was 0.9% lower at $2,397.78.
