Global Markets Mixed as Fed Meeting Looms; Gold Near Record High

MSCI’s global equities index edged higher on Friday after a record close, while U.S. Treasury yields rebounded as investors weighed soft economic data against rising rate cut expectations.

The University of Michigan survey showed consumer sentiment falling to its lowest since May, with inflation expectations for the next five years climbing to 3.9%, raising concerns about sticky price pressures.

On Wall Street, the Dow Jones fell 0.59%, the S&P 500 slipped 0.05%, while the Nasdaq gained 0.45% to another record close. For the week, the S&P rose 1.59%, Nasdaq 2.03%, and Dow 0.95%.

In currencies, the U.S. dollar index (DXY) rose 0.05% to 97.60. The yen weakened, with USD/JPY at 147.58, while the euro held at $1.1735. Sterling slipped to $1.356 after weak UK factory output data.

U.S. Treasury yields moved higher ahead of the Fed meeting, with the 10-year at 4.06%, the 30-year at 4.68%, and the 2-year at 3.56%.

Oil gained after Ukrainian drone strikes disrupted Russian exports, with WTI settling at $62.69 and Brent at $66.99 per barrel.

Gold extended its rally, rising 0.3% to $3,644.67, marking a fourth straight weekly gain and holding near Tuesday’s record high of $3,673.95, as investors positioned for upcoming U.S. rate cuts.