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Global markets traded in tight ranges on Wednesday as investors waited for a widely expected US Federal Reserve rate cut and a key earnings update from Oracle. US stock indexes showed minimal movement, while bond markets, currencies, and Bitcoin indicated a cautious tone.
The S&P 500 remained unchanged in early New York trading. The NASDAQ 100 slipped close to 0.2%, while the Dow Jones Industrial Average added nearly 0.3%. In Europe, the Stoxx Europe 600 and the MSCI World Index also traded close to flat, highlighting the reduced risk appetite.
Traders widely expect the Fed to reduce its benchmark rate by a quarter point. However, they place greater weight on the updated projections and Chair Jerome Powell’s comments on the path for policy in 2026. Many investors want clarity on how officials balance cooling inflation against a softer labor market.
Recent trading in US equities has tracked moves in the 10-year Treasury yield. The yield stood at 4.17%, only slightly below levels that previously pressured stock valuations. Strategists warned that any aggressiveness could push yields back toward 4.25%, a level that often coincides with weaker equity performance.
Derivatives markets showed that traders now assign more event risk to corporate and macro data than to the Fed decision itself. Implied moves around Oracle’s earnings, next week’s US jobs report, and the coming inflation release all exceeded the options-priced swing for the FOMC meeting.
Government bond markets reflected the same conservative behaviour. US 10-year yields dropped, while Germany’s 10-year yield jumped close to 2.87% and the UK 10-year yield climbed toward 4.52%. A global index of long-dated sovereign bonds traded near multi-year yield highs, suggesting investors still demand significant compensation for duration risk.
The Bank of Canada left its policy rate unchanged and signaled that current settings remain appropriate while it monitors trade and growth conditions. This move helped pull US yields slightly lower and reinforced the sense that major central banks are approaching the later stages of easing cycles.
Currency markets moved only modestly. The Bloomberg Dollar Spot Index held near flat, while the euro, the British pound, and the Japanese yen each gained slightly against the US currency. Bitcoin fell about 0.8% to trade near $91,950, while Ether rose approximately 0.7% to about $3,325.
Amazon.com Inc. announced plans to invest more than $35 billion in India by 2030, aiming to expand e-commerce, logistics, cloud, and artificial intelligence operations in one of its most important growth markets.
SpaceX stepped toward a stock market debut, looking to raise more than $30 billion. People familiar with the plan said the listing could become the largest on record if market conditions stay supportive.
GE Vernova Inc. rallied after the company doubled its dividend, expanded its share buyback program, and raised its earnings outlook, moves that signaled confidence in long-term demand for its power equipment.
In Asia, DeepSeek faced scrutiny after reports suggested the Chinese AI startup used NVIDIA chips that the US restricts for sale in China to train a new model. NVIDIA challenged the characterizations of a larger smuggling network. However, regulators and investors are closely watching the situation.
CEO Park Dae-jun's resignation led South Korean e-commerce group Coupang to go through a transition of its top management. The departure of the chief executive was one of the consequences of a gigantic data breach that leaked personal information of tens of millions of users and caused a political and regulatory uproar.
Overall, global markets remain steady as investors await clearer signals from the Federal Reserve and Oracle’s AI-driven earnings.
Also Read: US Stock Market Today: NASDAQ 100 and S&P 500 Rise 0.2% as Traders Await Fed Rate Decision
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