Global markets experienced mixed results on Wednesday following a surge in technology stocks that drove the Nasdaq composite to a new record high. European markets saw declines, with France's CAC 40 and Germany's DAX slipping, while Britain's FTSE 100 also shed value. In contrast, Dow futures and S&P 500 futures showed slight gains.
Asian markets were mostly down, with Hong Kong's Hang Seng and Shanghai Composite index both dropping. However, Japan's Nikkei 225 index closed higher as the Bank of Japan commenced a two-day policy meeting.
The European Union imposed increased tariffs on electric vehicles imported from China, leading to a negative response from Chinese authorities. This move resulted in a decline in Chinese EV companies' stocks, including Nio, Geely, and BYD.
Australia's S&P/ASX 200 also dipped after the country reported its lowest inflation rate in over three years. South Korea's Kospi and Taiwan's Taiex experienced losses as well.
In the U.S., the S&P 500 and Nasdaq composite rose, driven by gains in Big Tech stocks, while the Dow Jones Industrial Average fell. Mortgage rates have been rising due to higher 10-year Treasury yields, reflecting the strength of the U.S. economy.
Traders are adjusting their expectations for Federal Reserve interest rate cuts, with some even speculating that rates may remain steady at the upcoming meeting. Yields have also climbed amid perceptions of improved re-election chances for former President Donald Trump, which could impact inflation and interest rates.
Trump Media & Technology Group saw significant gains, mirroring Trump's election odds. Treasury yields and oil prices fluctuated, with U.S. benchmark crude oil and Brent crude both showing increases. Currency markets saw the dollar weakening against the Japanese yen and strengthening against the euro.
