So much for talk of a 'great rotation' out of bonds into equities, analysts say the best strategy may be bet on both assets.
The U.S. dollar pared its losses against the yen on Wednesday after the U.S. Federal Reserve said it will stick to its plan to buy $85 billion in bonds each month.
Stocks kicked off May with a big thud, with major averages dropping nearly 1 percent across the board, as a batch of weaker-than-expected economic data overshadowed the Federal Reserve's plan to maintain its stimulus program.
Crude oil dropped, extending its biggest monthly drop in 11 months in April, as fresh concerns over economic growth in China weakened the demand outlook.
U.S. Treasurys yields edged up from four-month lows on Wednesday after the Federal Reserve said it would stick to its plan to buy $85 billion in bonds each month, giving few indications of any new response to worsening economic data.
Gold settled almost 2 percent lower on Wednesday, the biggest daily drop since its historic decline in mid-April, as investors sold off a range of commodities.
The U.K.'s FTSE 100 Index closed off its session highs on Wednesday, after worse-than-expected employment data was released in the U.S. Trade was thin, with most European bourses shut for the May Day public holiday.
U.S. stock index futures were flat ahead of the outcome of the Federal Reserve's two-day meeting and after the S&P 500 set a fresh all-time high in the previous session.
It may be an old cliche but the term "sell in May and go away, buy again on Leger's day", looks increasingly like competent equity advice, according one analyst.
Australian stocks retreated from Tuesday's four-and-a-half-year high after Chinese manufacturing data revealed the nation's economic recovery may not be on solid footing while the Nikkei 225 extended losses as the yen strengthened.
Stocks exit April on a new high, and with the promise of continuing easy money policies, investors could be tempted to rethink the "sell in May and go away" strategy of recent years.
The dollar fell against the euro and yen Tuesday after a U.S. Midwest business barometer unexpectedly contracted in April, adding to worries about the economic recovery.
Brent oil fell towards $103 per barrel as worries about the demand outlook outweighed expectations for the U.S. Federal Reserve and European Central Bank stimulus.
U.S. Treasurys faded in the face of a giant debt sale by Apple, leaving prices little changed on the day.
Gold settled higher, but many investors remained on the sidelines ahead of central banks meetings this week in Europe and the United States and support from the physical market softened while major buyer China was on holiday.
European shares pared gains on Tuesday to close lower, after a raft of euro zone economic data softened earlier rises from positive earnings reports.
U.S. stock market index futures hovered around the flatline Tuesday, a day after the S&P 500 logged a fresh closing high, as investors weighed a batch of weak corporate earnings against a better-than-expected S&P/Case-Shiller home price report.
If it's springtime, that means it could be a good time not just to rotate the crops but the stock market sectors as well.
Asia's equity markets rose to fresh peaks on Tuesday, fueled by hopes of central bank stimulus but Japanese shares fell, weighed down by mixed economic data.
The euro rose against the dollar and yen on Monday after Italy finally formed a government, ending two months of political uncertainty.
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