In one of the clearest signs that investor confidence is waning, a closely watched measure of the dollar’s value was on track to give back its postelection gains.
Stocks fell around the world. The Dow Jones Industrial Average lost around 250 points in recent trading while the S&P 500 fell 1.1% and the Nasdaq Composite lost 1.7%.
Investors piled into assets they perceive as havens, sending gold up 1.7% to $1,257 an ounce and the yield on the benchmark 10-year Treasury note down to 2.246%, according to Tradeweb, from 2.329% Tuesday. Yields fall as bond prices rise.
The ICE U.S. Dollar Index, which measures the dollar against a basket of six currencies, was on track for its lowest close since Nov. 7.
Wednesday’s moves come as the U.S. stock market has been quite stable lately, with the S&P 500 closing with a daily percentage change of 0.5% or less for 15 straight sessions, the longest such streak since February 1969.
In European stocks, the real estate and banking sectors declined, but shares of Lloyds Banking Group rose 2.3% after the U.K. government sold its remaining shares in the bank it bailed out during the financial crisis.
The Stoxx Europe 600 shed 0.7%.
Investors are increasingly worried about the implementation of proposed business-friendly policies such as tax cuts as well as higher U.S. political risks this year following a series of developments in Washington, they said.
Earlier, the falling dollar and Treasury yields pressured stocks in Japan and cast broader concern over equity markets in the region. Japan’s Nikkei Stock Average fell the most in five weeks.
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