Global markets struggled for direction on Wednesday after a chaotic 24 hours that saw Wall Street touch historic levels while Asia-Pacific equities stumbled.
According to data from CNBC, U.S. stock futures barely moved after Tuesday’s record session, reflecting tension between rising corporate profits and growing global uncertainty.
The Dow Jones Industrial Average gained 57 points, or 0.12%, in early futures trading. S&P 500 futures ticked up by 0.17%, and Nasdaq 100 futures hovered slightly above the flatline.
Tuesday had ended with the Dow smashing through 47,000 during the session before closing just under it at a new record. That jump came after solid earnings earlier in the day, including a strong quarter from Coca-Cola.
Netflix drops while Intuitive pops in after-hours shake-up
The after-hours session on Tuesday wasn’t smooth. Netflix tumbled 6% after missing earnings estimates. Meanwhile, Intuitive Surgical jumped 16% as traders reacted to its much stronger revenue and profit results.
These two reactions stood out, setting the tone for how different sectors were being treated by investors looking for clear earnings beats.
The tech-heavy Nasdaq Composite closed slightly lower Tuesday as traders cooled on high-risk tech names. The S&P 500 stayed flat. A big reason? All eyes are now locked on Friday’s CPI report, one of the few datasets still scheduled during the U.S. government shutdown.
That release is expected to guide the next moves from the Federal Reserve, which is widely expected to cut the overnight borrowing rate by 25 basis points at its October meeting and possibly again in December.
On the political side, President Donald Trump told reporters his meeting with Chinese President Xi Jinping “maybe won’t happen,” which instantly revived investor fears about more tariffs and fresh semiconductor risks tied to China.
SoftBank crashes as Asia trades mixed
Asia-Pacific markets gave a mixed performance as investors digested new Japanese trade data and adjusted to political shifts. The Nikkei 225 in Japan ended the day nearly flat at 49,307.79, while the Topix rose 0.52% to close at a new high of 3,266.43.
But the spotlight was on SoftBank, which sank over 10% before clawing back some losses to close down 5%. That came after its 8.5% rise on Monday. There was no official news tied to the selloff.
South Korea was the standout. The Kospi gained 1.56% to 3,883.68, its sixth straight day of gains and a fresh closing record. The Kosdaq, known for its smaller firms, rose 0.76% to 879.15.
Elsewhere in the region, Hong Kong’s Hang Seng index fell 0.94% to close at 25,781.77. Notably, shares of Pop Mart, the toymaker behind the viral Labubu dolls, were up 2.4% after reporting a 250% surge in third-quarter revenue on Tuesday.
In Mainland China, the CSI 300 ended down 0.33% at 4,592.57. Australia’s S&P/ASX 200 slipped 0.71% to 9,030. Indian markets were shut for Diwali.
Japan’s exports in September offered a rare upside surprise. They rose 4.2% year over year, breaking a four-month streak of declines. Shipments to Asia were up sharply, helping offset falling sales to the U.S.
Over in Europe, the Stoxx 600 was 0.2% lower as of mid-morning in London. The DAX in Germany fell 0.3%, Italy’s FTSE MIB dropped over 0.6%, and France’s CAC 40 declined 0.7%. U.K. markets were the only ones showing any real optimism, with the FTSE 100 climbing over 0.7%.
Barclays was one of the few gainers in Europe. The British bank hiked its full-year outlook and announced a £500 million ($667 million) stock buyback in its latest earnings. Its shares gained almost 4% on the day.
In the U.K., September’s inflation held steady at 3.8%, beating expectations that it would climb slightly. That added more pressure to the market outlook, especially with bond yields already feeling strain.
While equities continue to react to earnings and headlines, the next big trigger is Friday’s inflation report, which traders hope will give the Fed clarity. Until then, it’s a waiting game across every market from Tokyo to New York.
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