Global markets faced turbulence by midday Wednesday as an unwinding of yen-dollar carry trades drove sharp losses in U.S. equities, with the tech-heavy Nasdaq 100 falling 1.2% in intraday trading.
Rising expectations that the Bank of Japan may raise interest rates in December pushed the dollar-yen pair down by 1.5%, marking its steepest drop since late September. This triggered a wave of “risk-off” sentiment, pressuring major indices.
The S&P 500 dipped 0.5% by midday, on track to snap a seven-day winning streak, while small caps in the Russell 2000 remained relatively steady. Treasury yields fell significantly as fresh economic data failed to stoke concerns about an imminent change in the Federal Reserve's interest rate path.
The U.S. economy expanded at an annualized 2.8% in the third quarter, according to a second estimate that matched earlier print. October's Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, also came in line with forecasts, showing a modest uptick.
Traders continue to bet on easier monetary policy, with Fed funds futures pricing in a 70% probability of a 25-basis-point rate cut at the Dec. 18 meeting.
In commodities market, gold inched up by 0.2%, while oil prices fell by 1% to $68 a barrel, heading for a three-day decline. Natural gas plummeted 7%, amid less cold weather forecasts reducing the outlook for heating demand.
Meanwhile, cryptocurrencies reversed their recent losing streak. Bitcoin (CRYPTO: BTC) rallied nearly 5% to above $96,000, while Ethereum (CRYPTO: ETH) surged more than 7%, hitting price levels last seen in late June 2024.
Wednesday’s Performance In Major U.S. Indices, ETFs
| Major Indices | Price | Chg % |
| Russell 2000 | 2,424.01 | 0.0% |
| Dow Jones | 44,747.65 | -0.3% |
| S&P 500 | 5,994.06 | -0.5% |
| Nasdaq 100 | 20,682.38 | -1.2% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust (NYSE:SPY) edged 0.4% lower to $598.35.
- The SPDR Dow Jones Industrial Average (NYSE:DIA) eased 0.2% to $448.13.
- The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) fell 1.1% to $503.71.
- The iShares Russell 2000 ETF (NYSE:IWM) inched 0.1% up to $241.01.
- The Real Estate Select Sector SPDR Fund (NYSE:XLRE) outperformed, rising 1%. The Technology Select Sector SPDR Fund (NYSE:XLK) lagged, down 1.9%.
Wednesday’s Stock Movers
- Semiconductor stocks, as tracked by the iShares Semiconductor ETF (NASDAQ:SOXX), witnessed broad-based declines amid rising trade tensions between U.S. and China following Donald Trump’s pledge to raise tariffs. Micron Technologies Inc. (NASDAQ:MU), Marvell Technology Inc. (NASDAQ:MRVL) and Arm Holdings plc (NASDAQ:ARM) were among the weakest performers, with drops of about 4.4%.
- Crypto-linked stocks rebounded after sharp drops witnessed a day earlier. Shares of Bit Digital Inc. (NASDAQ:BTBT) were up 16%, while Riot Platforms Inc. (NASDAQ:RIOT) and MARA Holdings Inc. (NASDAQ:MARA) were up by 9% and 6%, respectively.
- Dell Technologies Inc. (NASDAQ:DELL) tumbled by over 11% in reaction to earnings.
- Other stocks reacting to quarterly results were Crowdstrike Holdings Inc. (NASDAQ:CRWD), down 5.1%; Workday Inc. (NASDAQ:WDAY), down 5.2%; Autodesk Inc. (NASDAQ:ADSK), down 8%; HP Inc. (NYSE:HPQ), down 12% and Nutanix Inc. (NASDAQ:NTNX), down over 6%.
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