The Swiss Market Index closed 0.13% lower at 14,321 points on Tuesday, reflecting broader market caution as U.S. futures pointed to declines amid rising bond yields and geopolitical risks in the Middle East.
Swiss blue-chip stocks showed mixed performance. Roche advanced 1.45%, Novartis rose 1.8%, and Alcon gained 2.5%, while cyclical names such as ABB fell 3%. Nestlé added 0.6% and Swisscom rose 1%, with the latter receiving a price target upgrade from Barclays to 460 francs from 440 francs. Semiconductor-related equities lagged, with VAT down 4.6%, AMS-Osram down 6.4%, and Inficon and Comet each declining 4.5%. Basilea surged 10% following strong first-half results and raised full-year guidance, while Medartis climbed 6.4% on its half-year figures. Huber+Suhner slumped 11% after reporting disappointing first-half margins.
U.S. stock futures signaled declines, with the Nasdaq 100 down 1.49% to 29,548 points and the S&P 500 down 0.50% to 7,706 points. The Dow Jones Industrial hovered near flat at 53,434 points. European indices also declined, with the Stoxx 600 down 0.6%, the DAX and CAC 40 each down 0.6%, and the FTSE 100 down 0.2%. In Asia, the Nikkei fell 1.6%, while the Shanghai index slipped 0.2% and the Seoul index rose more than 3%.
Oil prices edged higher, with Brent crude at $91.23 per barrel, up 0.32%, and WTI crude at $85.06 per barrel, up 0.7%. Gold prices dipped 0.5% to $4,391.14 per ounce, while U.S. 30-year Treasury yields reached 5.321%, the highest since 2007. German 10-year bund yields climbed to 3.248%, the highest since 2011, and Japanese 10-year yields reached 2.945%, the highest in three decades.
Geopolitical tensions in the Middle East continued to weigh on sentiment, with the expiration of a 60-day ceasefire and disruptions to shipping through the Strait of Hormuz. Analysts cited rising long-term interest rates and Middle East risks as key factors undermining equity valuations. U.S. President Donald Trump stated that no negotiations with Iran were planned and warned of potential military action if Oman interfered with Strait operations.
In corporate news, Nvidia fell 2.2% as profit-taking and higher bond yields weighed on sentiment. Baidu slumped over 9% after reporting a significantly lower second-quarter profit due to weak online marketing sales. Pony AI rose 2.4% despite a Q2 adjusted loss of $0.10 per share, as revenue surged 68.8% year-over-year to $36.22 million, driven by a 691.2% increase in robotaxi revenue. Constellation Brands dropped 6.2% after Berkshire Hathaway liquidated its stake.
