Global markets entered Wednesday with oil prices under pressure and safe-haven assets gaining as investors positioned for key U.S. inflation data and Nvidia’s second-quarter earnings report.
Brent crude futures declined more than $2 to $86.22 per barrel, reflecting easing supply concerns after Iran restarted talks with Oman regarding management of the Strait of Hormuz. The talks follow a nearly six-month period of heightened tensions in the region, which has periodically disrupted maritime traffic. Commodity vessel transits through the strait dropped to their lowest level in three months, according to recent data.
Safe-haven demand supported spot gold and bitcoin, both of which approached three-month highs. The gains came as the U.S. dollar traded sideways ahead of the release of the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, due later in the session. The U.S. Treasury Department’s ongoing bond buyback program, aimed at capping long-end yields, added further support to non-yielding assets like gold by reducing pressure on the dollar.
Options traders priced in a potential $280 billion, or 5.4%, move in Nvidia’s market value following its earnings report, which is scheduled for after U.S. markets close. Over the past 12 quarters, Nvidia’s market value has historically swung by an average of 7.4% in reaction to its earnings releases, underscoring the heightened expectations surrounding its results.
In the United Kingdom, the Confederation of British Industry (CBI) distributive trades survey for August is also due Wednesday, providing additional insight into consumer spending trends ahead of the holiday shopping season. The data follows recent mixed signals on retail activity and could influence near-term monetary policy expectations.
The day’s developments unfolded against a backdrop of geopolitical and macroeconomic uncertainty, with investors balancing the impact of potential inflation surprises against earnings-driven volatility in high-profile technology stocks.
