The Swiss Market Index (SMI) was set to open 0.13% lower on Wednesday, according to IG Bank, extending a cautious tone across global equities as long-dated government bond yields surged to multi-decade peaks.
Geberit, the Swiss sanitary systems group, was in focus as investors awaited its half-year financial results. The company’s earnings release follows a day of broad-based declines in risk assets, with the Japanese Nikkei 225 falling 2.6% and China’s Shanghai Composite dropping 1.8%.
Benchmark bond yields continued to rise, with the 30-year U.S. Treasury yield reaching its highest level in nearly 20 years. Ten- and 30-year German Bund yields also climbed to the highest since 2011, as concerns mounted over unsustainable government debt trajectories. The 10-year U.S. Treasury yield approached 4.6%, while the equivalent German yield neared 2.7%.
In currency markets, the U.S. dollar softened 0.2% against the yen to 159.31, nearing a level that has historically triggered intervention speculation by Japanese authorities. The euro held steady at $1.1584, while the Swiss franc remained flat at 0.9400 per euro and strengthened slightly to 0.8116 per dollar.
Oil prices extended gains, with Brent crude rising 0.7% to $91.61 per barrel and U.S. West Texas Intermediate (WTI) climbing 0.8% to $85.61. The advance reflected persistent risks to shipping through the Strait of Hormuz amid ongoing tensions in the Middle East, despite no immediate progress in negotiations. U.S. President Donald Trump stated on Truth Social that Washington was not engaged in talks with Iran, heightening concerns over regional stability.
U.S. technology shares led declines, with the Nasdaq 100 falling 1.68% to 29,490.96 points, reversing part of Monday’s recovery. The Dow Jones Industrial Average slipped 0.22% to 53,343.40, while the S&P 500 dropped 0.69% to 7,691.76. The pullback followed a sharp rise in long-term borrowing costs, which weighed on high-growth sectors dependent on cheap financing.
Nvidia shares fell 2.3% as investors trimmed exposure to artificial intelligence (AI) beneficiaries after a recent rally. Micron, Sandisk and Marvell Technology each declined between 7% and 9%, while the Philadelphia Semiconductor Index—a bellwether for chip stocks—shed 5%. Meta shares dropped 4.5% after a court case alleging exploitation of children on social media platforms.
Baidu slumped 12.7% after reporting weaker-than-expected second-quarter earnings, with profits hurt by soft online advertising revenue. The decline underscored broader profit-taking in AI-linked equities following a prolonged rally.
In corporate news, UGI shares surged 9.4% after The Wall Street Journal reported KKR had made a $9 billion takeover bid for the U.S. natural gas and power utility. The deal, if confirmed, would mark one of the largest private equity transactions in the energy sector this year.
