Global stock markets edged lower on Wednesday, interrupting a two-day winning streak, as investors turned cautious ahead of Nvidia’s highly anticipated earnings release. The tech giant, the final member of the so-called “Magnificent Seven” to report this season, has drawn intense scrutiny from investors hoping for strong results to sustain the market’s AI-driven momentum. Simultaneously, oil prices spiked following a U.S. decision to block Chevron from exporting Venezuelan crude, fueling concerns about global supply disruptions.
Earlier optimism in the markets, spurred by a temporary easing of U.S.-EU trade tensions, began to fade. President Donald Trump’s announcement delaying the imposition of 50% tariffs on European imports provided a brief lift. His comments on renewed trade dialogue with the European Union had been welcomed by investors, but the market’s focus quickly shifted back to tech earnings and energy developments.
In the U.S., all three major indices posted modest declines. The Dow Jones Industrial Average dipped 0.15% to 42,279.69, while the S&P 500 fell 0.16% to 5,911.92. The tech-heavy Nasdaq Composite lost 0.15%, closing at 19,171.32. Losses were led by sectors such as utilities, energy, materials, and real estate. Nvidia shares remained flat as traders held back positions in anticipation of the company’s earnings.
European equities followed suit. The STOXX 600 index fell 0.53% after two consecutive sessions of gains fueled by the EU tariff reprieve. London’s FTSE 100 slid 0.47%, while MSCI’s global stock index dropped 0.24% to 879.01. Analysts like Chris Weston of Pepperstone believe investor confidence is building around Nvidia's potential to outperform earnings forecasts, noting that a strong showing could reignite market rallies.
In the commodities market, oil surged on the back of the Chevron export restriction. Brent crude futures rose 1.11% to $64.80 per barrel, and U.S. West Texas Intermediate crude climbed 1.36% to $61.72. The U.S. government’s new directive allows Chevron to retain its assets in Venezuela but bans the company from shipping oil or expanding operations there—tightening an already fragile global oil supply chain.
Bond markets reflected increased caution as well. Yields on U.S. Treasury notes climbed, with the 10-year note up 4.9 basis points to 4.483%, and the 30-year bond yield rising to 4.9924%. Overnight trading had been influenced by tepid demand for Japanese long-term bonds, which cast a shadow over global fixed-income markets.
Currency markets reacted to both geopolitical and economic signals. The U.S. dollar gained ground against major peers like the yen and euro, buoyed by hopes of new trade deals and the ripple effects of Japan’s weak bond auctions. The dollar strengthened 0.21% to 144.62 yen, while it dropped 0.25% to 0.825 against the Swiss franc. The euro slipped 0.1%, trading at $1.1315 amid broader uncertainty.
Meanwhile, gold prices ticked up as bargain hunters returned after the previous session’s selloff. Spot gold was last quoted down just 0.1% at $3,297.10 an ounce, reflecting the market's continued demand for safe-haven assets amid mixed global signals.