Global equity markets slipped after the Federal Reserve and the European Central Bank signaled they were in no hurry to cut interest rates further. Investors had been hoping for a faster shift toward easier policy, but recent inflation readings have kept central bankers cautious.

The selloff spread across major indices as traders reassessed the outlook for borrowing costs, corporate earnings, and economic growth. Higher-for-longer rate expectations often pressure stocks by raising financing costs and reducing the appeal of risk assets.

The latest move reflects how sensitive markets remain to policy guidance from major central banks. Even small changes in tone can trigger sharp adjustments in stocks, bonds, and currencies as investors try to price the path of inflation and growth.

For now, markets are left balancing hopes for future rate relief against the possibility that inflation will keep policymakers on guard. That uncertainty is likely to keep volatility elevated in the near term.