On Thursday, October 19, US stock markets experienced a notable downturn as treasury yields surged to their highest level in 16 years, nearing 5%. This rise in yields sent shockwaves through global markets, causing several major indices to post losses.

The Dow Jones Industrial Average closed the trading day with a decline of 0.75% at 33,414.17, reflecting the negative sentiment. Similarly, the S&P 500 dipped 0.85% to 4,278.00, while the Nasdaq Composite fell 0.96% and settled at 13,186.17.

The downward trend continued across the Pacific, with Japan's Nikkei 225 ending 0.52% lower at 31,259.36 on Friday. This mirrored the decline witnessed on Wall Street the previous night.

Australia's S&P/ASX 200 declined by 1.16%, closing at 6,900.70. The losses were primarily driven by banks and mining companies, while energy stocks managed a slight gain. Investors eagerly await key inflation data scheduled for release next week, which could further impact market sentiment.

In China, the Shanghai Composite fell 0.74% to close at 2,983.06, while the Shenzhen CSI 300 dropped 0.65% and ended at 3,510.59.

Hong Kong's Hang Seng Index also saw a decline, with a 0.65% drop, ending the session at 17,142.00.

Across Europe, the STOXX 600 index was down 1%, with Germany's DAX declining 1.23% and France's CAC sliding 1.21%. The UK's FTSE 100 traded lower by 0.88%.

Commodity markets also experienced notable movements. Crude Oil WTI saw an increase of 1.28% and was trading at $89.53 per barrel, while Brent crude was up 1.19% to $93.48 per barrel.

Natural Gas, on the other hand, declined by 0.41% to $2.945.

In the precious metals sector, Gold showed a gain of 0.78% and was trading at $1,995.85, while Silver gained 1.39% to reach $23.352. Copper experienced a decline of 0.74% to $3.5743.

Looking ahead, futures markets suggested a cautious sentiment. Dow futures were down 0.25%, S&P 500 futures declined 0.27%, and Nasdaq 100 futures slid by 0.33%.

Currency markets also saw some movement, with the US Dollar Index inching lower by 0.05% to 106.20. USD/JPY rose 0.10% to 149.94, while AUD/USD gained 0.30% to 1.5848.

As markets worldwide respond to the surge in treasury yields, investors remain cautious about the potential impact on various asset classes. The rising yields reflect concerns about inflation and the possibility of higher interest rates, which could potentially weigh on economic growth. Traders will closely monitor upcoming economic data releases and central bank communications for further indications of market direction.