Key facts
- U.S. stocks and global equities fell Wednesday due to a tech selloff and rising U.S.-Iran tensions.
- Investors are awaiting U.S. inflation data, with annual CPI expected above 4% and monthly core inflation slowing to 0.2%.
- The tech-heavy Nasdaq and S&P 500 tech index reached their lowest daily closes in over a month.
- The SOX chip index has declined 13% in the past week.
- Bank of Japan Governor Kazuo Ueda was hospitalized and will miss the upcoming policy meeting.
- USD/JPY reached its highest level since April 30, trading at 160.50.
U.S. stocks and global equities declined Wednesday, with technology shares leading the selloff. Investor sentiment was further shaken by U.S. President Donald Trump's threat to strike Iran forcefully, which also caused oil prices to rise sharply. The Nasdaq and S&P 500 tech index reached their lowest daily closes in over a month, and the SOX chip index has fallen 13% in the past week.
Investors are closely watching for U.S. inflation data, with annual CPI expected to exceed 4%, more than double the Federal Reserve's 2% target. However, monthly core inflation showed some relief, slowing to 0.2% from 0.4% and falling below consensus estimates.
In Japan, Bank of Japan Governor Kazuo Ueda was hospitalized and will miss the bank's upcoming policy meeting. The BOJ is expected to raise interest rates by 25 basis points to 1.00%. The yen weakened against the dollar, with USD/JPY reaching 160.50, its highest level since April 30.
U.S. Treasury yields were slightly higher, and the 10-year note auction saw strong demand, particularly from indirect bidders, often a proxy for foreign central banks. Oil prices rebounded 2%, while gold prices fell 4%.