Wall Street lost ground on Wednesday as investors analysed Federal Reserve minutes and braced for results from Nvidia. The tone turned cautious following a strong prior session, with renewed focus on inflation risks, policy trade-offs, and rising Treasury yields. While earnings reports painted a mixed picture, attention stayed cantered on Nvidia’s outlook and its role in business investment trends. Fed commentary reinforced a measured approach, but uncertainty remained high. After the bell, Nvidia delivered a robust earnings beat, lifting sentiment in extended trade and reigniting hopes for AI-driven growth.

Key Takeaways:

  • Dow Slips as Investors Turn Defensive: The Dow Jones Industrial Average fell 244.95 points, or 0.58%, to close at 42,098.70 on Wednesday, snapping a sharp rebound from the previous session. Investors turned cautious again as they weighed the Federal Reserve’s meeting minutes and rising Treasury yields. 
  • S&P 500 and Nasdaq Retreat Ahead of Nvidia Results: The S&P 500 declined 0.56% to finish at 5,888.55, while the Nasdaq Composite slipped 0.51% to 19,100.94. Both indexes pulled back after Tuesday’s gains, as traders reacted to cautious signals from the Fed. 
  • Europe Slides as German Unemployment Rises and UK Food Inflation Jumps: European markets closed in the red on Wednesday as weak labour data and consumer price pressures weighed on sentiment. Germany’s DAX dropped 0.78% from its record high, pressured by a larger-than-expected rise in unemployment, with jobless figures increasing by 34,000 in May. The CAC 40 in France fell 5% to 7,788, while the FTSE 100 declined 0.59% to 8,726.01. Italy’s FTSE MIB ended flat at 40,127.75 as strength in banking and energy stocks offset losses in autos. UK grocery price inflation climbed to 4.1% for the four weeks ending May 18, the highest since February last year, while grocery sales rose 4.4% year-on-year. The broader autos sector still managed to gain 0.7%, and oil and gas names edged up 0.12%. 
  • Asia Mixed as Inflation and Yield Pressures Limit Sentiment: Asian equities delivered a mixed performance on Wednesday following Wall Street’s tariff-driven rebound. South Korea’s Kospi rose 1.25%, while the Kosdaq gained 0.23%. In Japan, the Nikkei 225 closed flat at 37,722.40 and the Topix ended the day unchanged at 2,769.51 as soaring long-dated bond yields raised concerns over capital outflows. The 40-year Japanese government bond yield was last at 3.318%, still near its all-time high of 3.689%, while 30-year yields climbed above 2.91%. Australia’s S&P/ASX 200 slipped 0.13% after April’s inflation came in hotter than expected at 2.4%. Hong Kong’s Hang Seng index declined 0.55%, and China’s CSI 300 ended flat at 3,836.24, showing limited reaction to the tariff delay. India’s Nifty 50 dipped 0.17%, while New Zealand’s central bank cut its benchmark rate to 3.25%, offering little lift to local markets. 
  • Oil Rises as OPEC+ Holds Output Steady: Crude prices rose modestly after OPEC+ confirmed it would maintain current output quotas, deferring any major production changes to the upcoming July meeting. Brent settled at $64.90 per barrel, gaining 1.26%, while WTI added 1.56% to close near $61.84. The slight gains came despite muted reactions in energy equities, and attention now shifts to voluntary cut adjustments and macro-driven demand trends.
  • Treasury Yields Climb After Fed Minutes: U.S. bond yields rose as the Fed minutes signalled a patient but cautious policy stance amid uncertain inflation paths. The 30-year Treasury yield briefly topped the 5% mark before closing just below, while the 10-year settled near 4.49%. The 2-year yield also edged up close to 4%. Traders interpreted the minutes as confirming that rate cuts remain distant, especially if inflation persists.
  • Nvidia Delivers After-Hours Boost With Blowout Results: Nvidia posted stronger-than-expected earnings and revenue after the close, powered by a 73% surge in data centre sales. The company reported $44.06 billion in quarterly revenue and beat EPS expectations, lifting shares about 3% in extended trading. Despite a $4.5 billion charge tied to export restrictions on China-bound H20 chips, Nvidia’s outlook remained strong. The firm forecast $45 billion in revenue next quarter, underscoring continued AI-driven demand.

FX Today:

  • EUR/USD Holds Steady as Range Pattern Continues: EUR/USD closed nearly unchanged on Wednesday at 1.0849, slipping just 0.02% in a quiet session. The pair remains locked in a well-defined consolidation band between 1.0780 and 1.0890, with neither side gaining traction. It is currently hovering just above the 50-day SMA at 1.0811 and the 100-day SMA at 1.0782, both providing underlying support. The 200-day SMA sits lower at 1.0725 and reinforces the long-term floor. Price action has been muted, suggesting short-term positioning flows are dominant. A close above 1.0890 would be needed to start bullish momentum toward 1.0950 and possibly 1.1000. On the downside, a break below 1.0780 would open risk to the 1.0725 area.
  • GBP/USD Drifts Lower But Holds Above Key Support: GBP/USD edged down 0.10% on Wednesday to close at 1.2705, marking its second consecutive session of modest losses. The pair has been unable to breach resistance between 1.2770 and 1.2800, with sellers repeatedly capping upward attempts since mid-May. Price remains above the 50-day SMA at 1.2653 and the 100-day SMA at 1.2593, both of which are beginning to slope upward. Support remains intact above the 1.2650 level, helping preserve the gentle uptrend from early April. A deeper pullback could bring the 200-day SMA at 1.2555 into focus. Buyers will need to reclaim the 1.2770 area to resume a push toward 1.2850. 
  • USD/JPY Extends Recovery Toward 145.00 Mark: USD/JPY rose 0.39% on Wednesday to settle at 144.88, continuing its rebound from last week’s low near 140.31. The pair has climbed back above the 20-day and 50-day SMAs, with the 50-day now at 145.40 acting as immediate resistance. Despite the recent upturn, broader trend pressure persists, with the 100-day SMA at 148.85 and the 200-day SMA at 149.45 still declining. Price has formed a short-term sequence of higher lows, improving near-term sentiment. A sustained break above 145.40 could open the door to 147.50. If momentum fades, support is expected around 143.50, followed by stronger demand near 142.00. 
  • USD/CAD Rebounds Toward 1.3850 After Monday’s Dip: USD/CAD gained 0.18% on Wednesday to finish at 1.3833, retracing part of its earlier decline from Monday’s lows near 1.3700. The pair has found support at a key short-term level and is forming a potential bullish reversal pattern. Immediate resistance now lies around the 1.3900 to 1.3950 zone, which has capped multiple rallies in recent weeks. The 100-day SMA at 1.4164 and the 200-day SMA at 1.4017 continue to weigh on the medium-term outlook. Despite the recent bounce, upside momentum remains limited without a break above 1.3950. On the downside, first support is seen at 1.3750, followed by the 1.3650–1.3680 area that helped halt April’s correction.
  • Silver Slips Below $33 as Rebound Momentum Stalls: Silver close at $32.95, falling 0.96% and losing ground after failing again to clear the $34.00 resistance zone. The metal slipped just beneath the 50-day SMA at $32.72 and the 100-day SMA at $32.15, both of which have offered recent short-term support. Despite this drop, silver remains near the upper boundary of its two-month range, though fading momentum may limit further upside. Key support rests at $32.00, followed by the 200-day SMA at $31.43. A break below these could signal a deeper pullback toward $30.50. Bulls will need to reclaim $34.00 to reopen the path toward $35.00. 
  • Gold Holds Near $3,300 After Failing to Break Higher: Gold edged down 0.11% on Wednesday to close at $3,297, pausing just below the psychological $3,300 mark. Technically, gold remains in a strong position above all key SMAs, with the 50-day at $3,211, the 100-day at $3,021, and the 200-day at $2,794. Support is solid near $3,250, where price has consolidated over the past week. A drop below this zone would expose $3,211 and potentially invite a deeper pullback. Resistance stands at $3,325 to $3,330, which must be cleared for a move toward $3,400. 

Market Movers:

  • Abercrombie & Fitch Surges on Strong Earnings: Shares jumped 14.7% after the company beat first-quarter earnings and revenue estimates, driven by strong results at Hollister.
  • Okta Plunges on Unchanged Guidance: The stock fell 16.2% despite better-than-expected quarterly results, as management kept forward guidance unchanged. 
  • Vail Resorts Climbs on CEO Return: Shares rose 8.7% after Rob Katz was reinstated as CEO, replacing Kirsten Lynch. Katz had previously led the company from 2006 to 2021.
  • Box Hits Record High on Earnings Beat: The stock soared 17.2% and reached an all-time high following strong fiscal first-quarter results. 
  • Joby Aviation Soars on Toyota Investment: Shares rallied 28.8% after Toyota confirmed a $250 million initial investment, part of a previously announced $500 million funding plan.
  • GameStop Tumbles After Bitcoin Buy: Shares sank 10.9% after the company revealed it had purchased 4,710 bitcoins, worth over $500 million. The move sparked comparisons to MicroStrategy and raised concerns about risk exposure, despite the recent surge in bitcoin to near $112,000.

Markets paused on Wednesday as investors absorbed the latest Fed commentary and awaited key signals from Nvidia. While the session ended in the red, Nvidia’s after-hours surge provided a late spark that could shift sentiment heading into Thursday. Treasury yields remain a central concern, especially as inflation remains sticky and the Fed signals limited policy flexibility. Overseas, rising unemployment in Germany and elevated food inflation in the UK added to the cautious tone. With major earnings now winding down, traders will refocus on macro data, bond market moves, and any fresh developments on trade or policy fronts.