Global equity markets softened on Thursday as rising government bond yields and mixed inflation signals prompted investors to scale back exposure to high-valuation technology and growth stocks. U.S. Treasury yields climbed after a stronger-than-expected labor-market release, increasing pressure on equity risk premiums. European markets followed the same trend, with benchmarks in Germany and France closing lower amid cautious institutional flows. Analysts said investors are gradually rotating into defensive sectors such as utilities and consumer staples while awaiting clearer guidance from central banks. The session highlighted renewed sensitivity to macro indicators and interest rate expectations.