* Nasdaq confirms correction; S&P 500 ends down
* Gold rises more than 1.5%
* Bond price rally drives yields lower (Updates to closing U.S. market activity)
By Caroline Valetkevitch
NEW YORK, June 3 (Reuters) - The Nasdaq confirmed it was in a correction on Monday as stocks extended their recent sell-off, and the continued flight to safe-haven assets pushed 10-year U.S. Treasury yields to their lowest since September 2017.
The Nasdaq ended the session more than 10% lower than its May 3 closing record, falling 1.6% on the day after regulatory fears sent shares of internet giants Alphabet Inc GOOGL.O , Facebook Inc FB.O and Amazon.com Inc AMZN.O sharply lower. driving the recent fall in stocks and bond yields has been deepening trade conflicts between the United States and its partners. Nasdaq has been falling since its May 3 record high, hit just before U.S. President Donald Trump's tweet on trade that set off a month of turbulence. Global stock markets shed over $2 trillion in value in May. slump has been concurrent with fears of slowing global growth," said Bucky Hellwig, senior vice president at BB&T (NYSE:BBT) Wealth Management in Birmingham, Alabama.
Investors again sought protection from market volatility in low-risk assets such as Treasuries and gold.
A gloomy economic outlook is prompting traders to increase bets that the U.S. Federal Reserve will cut interest rates sooner rather than later.
In late U.S. trading, federal funds futures implied traders saw about a 67% chance the U.S. central bank would reduce key short-term borrowing costs by a quarter point to 2.00%-2.25% at its July 30-31 policy meeting. on U.S. two-year notes US2YT=RR had their biggest two-day fall since 2008, while U.S. benchmark 10-year Treasury yields US10YT=RR hit 2.062%, their lowest since September 2017. German government bond yields earlier fell to an all-time low.
"What the bond market is telling us is that all of these pressures put together create a likely economic slowdown which is pushing yields down," said Eric Kuby, chief investment officer, North Star Investment Management Corp in Chicago.
Treasury yields extended their decline following remarks from St. Louis Federal Reserve President James Bullard who said a U.S. rate cut may be "warranted soon" because of global trade tensions and weak U.S. inflation. prices jumped more than 1.5% to their highest level in more than three months on the trade concerns. addition to increasing tariffs on Chinese imports in recent weeks, the White House has hardened its stance toward other countries, including Mexico.
The Dow Jones Industrial Average .DJI rose 4.74 points, or 0.02%, to 24,819.78, the S&P 500 .SPX lost 7.61 points, or 0.28%, to 2,744.45 and the Nasdaq Composite .IXIC dropped 120.13 points, or 1.61%, to 7,333.02.
An index of global stocks edged higher on Monday.
The pan-European STOXX 600 index .STOXX rose 0.39% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.07%.
The dollar index .DXY fell 0.52%, while the Japanese yen strengthened 0.02% versus the greenback at 108.06 per dollar. the energy market, oil fell amid the escalating U.S. trade disputes. Brent crude futures LCOc1 settled at $61.28 a barrel, losing 71 cents, or 1.2%. U.S. West Texas Intermediate (WTI) crude CLc1 ended 25 cents, or 0.5%, lower at $53.25 a barrel.
With the bitter trade mood weighing, factory activity slowed in the United States, Europe and Asia last month, surveys showed. Institute for Supply Management said its gauge of U.S. manufacturing activity unexpectedly fell in May to the weakest level in more than 2-1/2 years. Korea exports
https://tmsnrt.rs/2Kn47VJ Messy May for global markets
https://tmsnrt.rs/2WJboFV US 2-year yield in biggest two day fall since 2008 crisis
https://tmsnrt.rs/2WFaY3b Asian stock markets
: https://tmsnrt.rs/2zpUAr4 Rising trade tension on U.S. rate-cut expectations png
https://tmsnrt.rs/2KdE2by
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