Federal Reserve's announcement to leave the interest rates unchanged sparks a global concern regarding the future outlook of global economic. The Wall Street particularly reacts negatively towards the news as most stocks are trading at a lower price forcing the index to close lower.
U.S. stocks ended with slight gains on Tuesday, with the Nasdaq eking out another record close while investors continued to await clarity on whether Greece could reach a deal to prevent defaulting on its loans.
The U.S. dollar slid on Wednesday while Wall Street stocks rose in volatile afternoon trading after the Federal Reserve signalled it may wait until late this year to raise interest rates.
The New Zealand dollar slumped 2.5 percent against the U.S. dollar on Thursday, hitting a five-year low after the Reserve Bank of New Zealand surprised some by cutting interest rates and flagging the chance of more easing.
German bond yields hit 1 percent for the first time since September on Wednesday as long-term inflation expectations rose, although recent rollercoaster moves in fixed-income markets kept stock markets flat.
U.S. consumer spending growth unexpectedly stalled in April as households cut back on purchases of automobiles and continued to boost savings, suggesting the economy was struggling to gain momentum early in the second quarter.
Oil prices recovered on Thursday after a two-day slide as the dollar weakened, making fuel less expensive for holders of other currencies.
A string of reversals from sharp moves the previous day marked global financial market trading on Wednesday, with stocks and oil gaining ground and the U.S. dollar falling after its biggest rally in two years.
Manufacturing activity growth remained sluggish in some of the world's major economies in April, suggesting that global economic growth remains "moderate and uneven," as the International Monetary Fund described it in its World Economic Outlook in April.
The U.S. dollar rebounded against the euro on Wednesday after the European Central Bank reiterated its dovish stance on monetary policy, though weaker-than-expected U.S. economic data limited the dollar's advance.
The Australian dollar gained more than 1 percent against the U.S. dollar, on track for its biggest daily rise in more than two weeks, after the Reserve Bank of Australia surprised many investors by refraining from cutting interest rates.
U.S. Treasuries prices rallied, the U.S. dollar fell and stock index futures fell on Friday after weaker-than-expected March U.S. jobs data.
Wall street analysts may be inadequately accounting for the dollar’s sharp rise in the first quarter, setting up a scenario in which some multinationals may miss already low consensus estimates - and their shares sell off as a result.
Wall Street investors may find little reason to make big moves next week as they await monthly U.S. jobs data and any news that could change expectations for the first interest rate hike in almost a decade.
U.S. stocks fell for a second straight session on Tuesday, with equities maintaining a tight range that corresponded with currency fluctuations as traders focused on the dollar's strength and its possible effect on corporate earnings.