Global Markets Update

By Chibuike Oguh and Lawrence White
NEW YORK/LONDON (Reuters)
Global equity markets eased while the U.S. dollar rebounded on Wednesday. Chipmaker Nvidia (NASDAQ: NVDA) reported better-than-expected results, but its stock fell 3% in extended trading due to mixed investor reactions.

Wall Street’s main indexes finished lower:
– Dow Jones Industrial Average: -0.39% to 41,091.42
– S&P 500: -0.60% to 5,592.18
– Nasdaq Composite: -1.12% to 17,556.03

In Europe, the benchmark STOXX index climbed 0.33%, while Japanese stocks closed 0.22% higher. MSCI’s gauge of global stocks was down 0.42% at 827.32.

Nvidia’s third-quarter revenue forecast of $32.5 billion surpassed Wall Street estimates but failed to meet the highest forecasts. Despite a 3,000% increase in its stock price since 2019 and a market capitalization of $3 trillion, shares dropped 3% in after-hours trading, finishing down 2% at $125.61.

Michael Ashley Schulman, CIO at Running Point Capital, noted some investor disappointment compared to bullish expectations.

A preliminary estimate of the U.S. second quarter GDP is due Thursday, and the Fed’s preferred inflation measure, the core personal consumption expenditures (PCE) index, will be released on Friday. Markets are anticipating a 25 basis point interest rate cut next month and over 100 basis points of easing by the year’s end.

The yield on U.S. 10-year Treasury notes rose 0.8 basis points to 3.841%. David Spika, chief markets strategist at Turtle Creek Wealth Advisors, highlighted the economic data supporting a soft landing and steady economy.

After a recent decline, the dollar advanced, with the dollar index gaining 0.5% to 101.10; the euro fell 0.63% to $1.1114. Gold prices were impacted by the stronger U.S. dollar, losing 0.68% to $2,507.50 per ounce, while U.S. gold futures settled 0.6% lower at $2,537.80.

Oil prices fell amid concerns over Chinese demand and broader economic slowdown risks. Brent crude futures dropped 1.13% to $78.65 per barrel, while U.S. West Texas Intermediate crude futures fell 1.34% to $74.52.