Sensex, Nifty Today: Why is stock market falling today?

1. The domestic stock market is facing pressure today, largely due to the impact of the "Trump trade" revival. As the dollar strengthened and U.S. yields rose sharply after Trump's election, emerging markets, including India, were hit hard by these global cues. The market sentiment was dampened as investors reacted to the potential economic shifts and policy changes that Trump's victory could trigger.

2. US Treasuries saw a sharp decline on Wednesday, pushing yields to multi-month highs. This movement came after Trump's election victory, which fueled expectations of economic policy changes likely to increase deficits and inflation. The benchmark 10-year Treasury yield climbed to 4.479%, its highest level since July.

3. Investors are now turning their attention to the Federal Reserve's upcoming rate decision to gauge the interest rate trajectory. The US Federal Reserve began its two-day monetary policy meeting on Wednesday. While the Fed is expected to announce another 25-basis point rate cut, the outlook for future rate decisions remains uncertain. This has added to the overall market volatility.

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