Global stock markets pulled back on Wednesday as investor optimism faded, with major indices in the U.S., Europe, and Asia closing lower. Wall Street’s Dow, S&P 500, and Nasdaq each fell by 0.5% to 0.6%, weighed down by rising U.S. Treasury yields and caution ahead of chipmaker Nvidia’s earnings. Despite the dip, Nvidia’s shares jumped after-hours on better-than-expected quarterly results, reporting $44.1 billion in revenue and $18.8 billion in profit.
Minutes from the latest Federal Reserve meeting highlighted inflationary concerns, as U.S. companies warned that tariffs might shift costs to consumers. This renewed skepticism toward former President Donald Trump’s tariff policies has rattled investor confidence.
European markets mirrored the downturn, with the FTSE 100 falling 0.6%, the CAC 40 dropping 0.5%, and the DAX slipping 0.8%. Asian markets also declined, with the Hang Seng down 0.5% and Shanghai’s Composite index dipping slightly.
Meanwhile, oil prices surged on rising geopolitical tensions involving Russia and Iran. West Texas Intermediate (WTI) rose 1.6% to $61.84 per barrel, and Brent crude climbed 1.3% to $64.90. Concerns over Russian attacks in Ukraine and stalled U.S.-Iran nuclear talks are fueling fears of tighter supply and possible sanctions.
In currency markets, the U.S. dollar strengthened against major peers, though analysts warned of underlying vulnerabilities in U.S. financial markets.
Elsewhere, auto giant Stellantis announced a leadership change, with Antonio Filosa set to replace Carlos Tavares as CEO. The news sent the company’s shares down more than 2% in Milan.
Market sentiment remains fragile as investors weigh geopolitical risks, inflationary pressures, and uncertain trade policies.
