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U.S. stock futures pointed slightly higher on Wednesday, suggesting that equities may attempt a modest rebound after several sessions of steep declines.

Some traders are stepping back in to scoop up discounted stocks following the recent slide, offering potential support in early trading.

On Tuesday, the major indexes closed at their lowest levels in a month, weighed down by persistent worries about an AI-driven market bubble.

Still, enthusiasm at the opening bell may remain limited as investors await earnings from one of the market’s most influential AI names, which will report results after the close.

Russ Mould, investment director at AJ Bell, warned: “Nvidia reports tonight and the slightest bit of news to disappoint investors has the potential to whip up a tornado across global markets.” He added: “Investors will be hanging on [CEO] Jensen Huang’s every word and looking for clues that big investment in AI is worth it.”

Mould also emphasized caution: “Huang is an eternal optimist and Nvidia has a habit of smashing earnings expectations. Therefore, investors might be digging deeper than usual into the numbers to spot any signs of weakness, rather than simply being swayed by the headline narrative.”

Traders are also hesitant to make meaningful moves ahead of Wednesday afternoon’s release of the Federal Reserve’s latest meeting minutes.

The minutes may shed more light on the central bank’s thinking on interest rates, especially after market expectations for a December cut have softened.

According to CME Group’s FedWatch Tool, the odds of a 25-basis-point rate cut next month currently stand near 50%.

On Tuesday, stocks attempted to recover from sharp early declines but still ended with hefty losses, extending Monday’s retreat and sending the major benchmarks to fresh one-month lows.

The Dow sank 498.50 points, or 1.1%, to 46,091.74. The Nasdaq fell 275.23 points, or 1.2%, to 22,432.85, while the S&P 500 dropped 55.09 points, or 0.8%, to 6,617.32.

Ongoing weakness in tech shares continued to drag on markets, with Nvidia (NASDAQ:NVDA) tumbling 2.8%—following a 1.8% drop on Monday—as traders brace for the company’s quarterly report.

Given recent anxiety over a potential AI bubble, Nvidia’s results and guidance could have an outsized influence on market sentiment.

Investors are also preparing for several key U.S. economic releases delayed by the recent government shutdown, including Thursday’s September jobs report.

On the data front, the Commerce Department reported that factory orders bounced 1.4% in August after a 1.3% decline in July—matching economist expectations.

Among sector moves, computer hardware stocks were hit hard, with the NYSE Arca Computer Hardware Index plunging 3.7%. Semiconductor and software names also slumped, deepening the Nasdaq’s pullback.

Retailers struggled as well, with the Dow Jones U.S. Retail Index sliding 2.4%. Home Depot (NYSE:HD) led the downturn, sinking 6.0% after reporting softer-than-expected third-quarter earnings and cutting its full-year profit outlook.

Conversely, energy stocks bucked the market downturn, supported by a sharp jump in crude prices. The NYSE Arca Oil Index rose 1.4%.

European equities hovered around the flatline on Wednesday, holding close to the one-month lows hit in the previous session as concerns about a potential AI-driven bubble, fading expectations of rate cuts, and lingering worries over the economic outlook continued to weigh on sentiment.

The British pound traded softer after fresh data showed that U.K. inflation cooled in October, largely due to lower gas and electricity costs.

The consumer price index rose 3.6% year-on-year last month, easing from 3.8% in September, though still coming in slightly above economists’ projections of 3.5%.

Across the major indices, the FTSE 100 slipped 0.2%, France’s CAC 40 edged down 0.1%, while Germany’s DAX managed a modest 0.2% gain.

In corporate moves, Lloyds Banking Group shares dipped in London after the bank confirmed it will acquire fintech firm Curve as part of its digital strategy.

British Land (LSE:LLOY) also traded lower after reporting a 1.2% rise in the value of its U.K. property portfolio for the half-year to September.

On the upside, Rotork (LSE:ROR) jumped after announcing a new £50 million share buyback program.

Swiss drugmaker Roche (BIT:1RO) advanced following news that the European Commission granted conditional marketing approval for its subcutaneous formulation of Lunsumio.

Sage Group (LSE:SGE) climbed sharply as the software company delivered a stronger-than-expected set of full-year numbers and unveiled a £300 million share repurchase plan.

Tesco (LSE:TSCO) also gained ground after launching the third tranche of its ongoing £1.45 billion buyback, with up to £350 million earmarked for repurchases.

Kering SA (EU:KER) slipped more than 3% on Wednesday after a Reuters report revealed that CEO Luca de Meo has instructed top executives to scale back the company’s retail footprint, lessen its dependence on Gucci, and deepen collaboration across the group, according to an internal memo reviewed by the news agency.

The memo — described as a condensed version of a broader strategic document titled “ReconKering” — sheds new light on de Meo’s early plans to revitalize the company. The details emerge less than a month after Kering agreed to sell its beauty division to L’Oréal (EU:OR) for €4.7 billion.

Reuters added that the company intends to bolster liquidity and sharpen its focus on core luxury fashion brands.

In the document, de Meo wrote that Kering “remains humble” and stated his goal for the company to become “the undisputed challenger in luxury” within the next five to ten years, according to the report.

Kering has been grappling with a steep sales drop at Gucci — its primary profit engine — while debt has increased following several acquisitions.

As reported by Reuters, de Meo set an 18-month timeline for returning all brands to growth and estimated it would take around three years to restore what he referred to as “top financial performance.” The memo also notes that Kering, which has already shut down 55 stores over the past year, must continue trimming its retail network and re-evaluate its pricing architecture and product assortment after several years of aggressive price hikes.

Reuters said de Meo cautioned against an “overdependency” on Gucci and argued that the group needs to speed up the development of Saint Laurent, Bottega Veneta and Balenciaga.

The document reportedly says that the jewelry division — which has struggled to scale in competition with LVMH (EU:MC) and Richemont (BIT:1CFR) — should seek stronger synergies within the group.

Brioni was listed among the brands with development potential, though Reuters noted that both Brioni and Alexander McQueen have been the subject of divestment rumors.

In a statement, Kering said de Meo laid out the foundations of his strategic direction when he took charge in September, and that this guidance has been shared internally. According to the report, the company intends to present its full strategic roadmap to investors next spring.

Oil prices retreated on Wednesday after fresh industry data pointed to another rise in U.S. crude stockpiles, adding to concerns that global supply may be outstripping demand. However, the pullback remained modest as traders kept a close eye on impending U.S. sanctions that could limit Russian oil flows.

As of 07:30 GMT, Brent crude slipped 22 cents, or 0.3%, to $64.67 a barrel, following a 1.1% gain in the previous session. WTI futures were down 17 cents, or 0.3%, at $60.57, after climbing 1.4% on Tuesday.

According to market sources citing American Petroleum Institute data, U.S. inventories of crude and refined products rose last week. The API reported that crude stocks increased by 4.45 million barrels, gasoline by 1.55 million barrels, and distillate inventories by 577,000 barrels.

ING’s commodities strategists described the report as “overall […] relatively bearish,” but cautioned that “Market participants appear more concerned about supply risks than the odds of a surplus going forward.”

A new wave of U.S. sanctions targeting Rosneft and Lukoil requires companies to cease dealings with the Russian producers by November 21, adding potential strain to global supply chains. The U.S. Treasury said Monday the measures are already squeezing Moscow’s oil revenues and are expected to reduce export volumes further. Buyers in China and India have reportedly begun securing replacement supplies.

Emril Jamil, senior oil analyst at LSEG, said: “Benchmark prices are rangebound, with the market eyeing the (November 21) sanctions’ impact, though there are downward pressures in the background with oversupply sentiment.”

Prices had firmed on Tuesday as traders digested the sanctions and a series of Ukrainian strikes on Russian refineries and export terminals, which heightened worries about near-term disruptions to crude and fuel supplies.

Still, analysts warn that expectations of oversupply remain a counterweight to geopolitical pressures. European diesel margins surged to their highest level since September 2023 following the Ukrainian attacks, signaling tightness in refined fuel markets even as crude appears plentiful.

Analysts at Haitong Futures noted, “Oil prices have found support from the strong diesel market but the persistent crude oversupply is keeping investors cautious about chasing further gains in crude.”

Market attention now turns to official U.S. government inventory figures due later Wednesday. A Reuters poll of eight analysts forecasts that crude stocks likely fell by around 600,000 barrels in the week ended November 14.

Gold prices advanced in Asian trading on Wednesday, supported by renewed demand for defensive assets as investors grew increasingly uneasy about fiscal pressures in major developed economies, particularly Japan.

Questions over whether the Federal Reserve will move ahead with a December rate cut — as mixed labor market signals emerge and markets await the minutes from the Fed’s October meeting — also helped lift gold alongside other havens.

The dollar held steady after a recent upswing, offering additional support to metals. A broad slide in global equities, driven by worries about overstretched technology valuations, further encouraged investors to rotate into gold. Traders are now watching results from NVIDIA Corporation (NASDAQ:NVDA), which could influence overall risk sentiment.

By 00:54 ET (05:54 GMT), spot gold was up 0.6% at $4,092.51 an ounce, while December gold futures gained 0.7% to $4,093.79.

Haven flows strengthen as Japan’s fiscal outlook draws scrutiny

A sharp rise in Japanese government bond yields — especially at the long end — has stirred fears that the country’s already heavy spending plans are becoming more difficult to finance. Concerns intensified following reports that Prime Minister Sanae Takaichi is preparing a stimulus package far larger than anticipated, worth around 25 trillion yen ($163 billion).

Yields on 20- and 30-year Japanese bonds climbed to levels not seen in decades, while the benchmark 10-year yield touched its highest point since the 2008 global financial crisis.

Because Japan is one of the world’s largest creditor nations, instability in its debt market — particularly as foreign demand wanes — risks spilling into broader global markets.

Geopolitical tension also played a role, with a diplomatic dispute between Japan and China escalating this week after remarks from Takaichi regarding Taiwan, despite efforts by Tokyo to de-escalate the situation.

Other precious metals joined the rally: spot platinum rose 0.9% to $1,547.96, and spot silver jumped 1.3% to $51.3825.

Fed doubts linger as markets look to meeting minutes

Uncertainty about the Federal Reserve’s next move continued to underpin gold after recent jobless claims suggested persistent softness in the U.S. labor market.

While traders slightly increased bets on a December rate cut, markets overall remain tilted toward the expectation of a pause. According to the CME FedWatch Tool, the probability of a 25-basis-point cut at the December 10–11 meeting sits at 42.4%, sharply lower than the 62.4% odds seen last week.

Investors are now focused on the upcoming release of the Fed’s October minutes. Although policymakers overwhelmingly backed a 25-bp reduction last month, divisions have grown over whether another cut is warranted in December.

The prolonged U.S. government shutdown has also left the Fed with limited new economic data, increasing the chances that officials take a more cautious approach at their final meeting of the year.

Stable interest rates typically diminish the appeal of non-yielding assets like gold — but with economic uncertainty rising, safe-haven demand remains firmly in place.

U.S. markets looked directionless early Wednesday as traders awaited several major earnings releases, with Nvidia (NASDAQ:NVDA) once again expected to take center stage. The chipmaker’s quarterly results could play a decisive role in shaping momentum around the artificial intelligence boom, especially after the recent pullback in tech stocks. Meanwhile, Lowe’s (NYSE:LOW) and Target (NYSE:TGT) are set to provide key updates on consumer spending ahead of the holiday season, and the Federal Reserve is due to release the minutes from its October policy meeting.

Futures tread water

Around 02:37 ET, futures tied to the Dow, S&P 500, and Nasdaq 100 showed minimal movement as investors digested Tuesday’s steep declines. The weakness extended a multiday selloff driven by fears that heavy, often debt-financed AI investments and stretched tech valuations may no longer be sustainable.

Chipmakers bore the brunt of the pressure once again, with names like Advanced Micro Devices (NASDAQ:AMD), Marvell (NASDAQ:MRVL) and Micron (NASDAQ:MU) dragging the Nasdaq Composite lower.

Adding to the uneasy tone, Bank of America’s survey of fund managers showed that the biggest “tail risk” for markets is the possibility that the AI sector is in a “bubble.”

In corporate news, Home Depot (NYSE:HD) tumbled 6% after cutting its full-year outlook, setting a cautious tone ahead of a wave of retail earnings due in the coming days.

Fresh labor data offered a mixed picture: ADP reported a slowdown in private-sector layoffs through early November, while government figures showed a notable rise in continuing unemployment claims from mid-September to mid-October.

Spotlight on Nvidia

Investor attention now turns squarely to Nvidia. With a market cap of $4.41 trillion and more than 7% weighting in the S&P 500, the company’s performance has the potential to sway both equity markets and broader economic expectations. Analysts at Capital Economics emphasize that AI is fueling not just stock prices but also U.S. economic growth, making Nvidia’s results especially consequential.

Consensus expectations, compiled by Bloomberg, point to third-quarter revenue of $55.19 billion and adjusted operating income of $36.46 billion.

Stifel analysts wrote that “[w]e expect the near-term investor debate to remain centered on the sustainability of infrastructure investment,” despite ongoing increases in hyperscaler spending. They added that concerns about circular deal-making in the AI ecosystem — much of it involving Nvidia — have “increased as well,” though the firm remains “best positioned” to benefit from accelerating AI compute demand.

Nvidia shares slipped 2.8% on Tuesday ahead of the report.

Lowe’s and Target set to report

Lowe’s and Target will issue their latest results before U.S. markets open, alongside off-price retailer TJX Companies (NYSE:TJX). Walmart (NYSE:WMT) follows on Thursday.

Retailers have been a focal point for investors this week, particularly after the extended government shutdown left markets without key data on consumer conditions. Home Depot’s update on Tuesday painted a more pessimistic picture, noting that expectations for lower interest rates to revive large home improvement spending failed to materialize. Uncertainty linked to elevated U.S. tariffs has also weighed on consumer willingness to undertake major projects.

Fed minutes ahead

Later Wednesday, markets will parse the minutes from the Federal Reserve’s October meeting. Policymakers reduced rates by 25 basis points last month to a range of 3.75%–4%, after a similar cut in September.

Fed Chair Jerome Powell has since cautioned that, despite widespread expectations, a December rate cut is not guaranteed. Several officials have called for patience following the data blackout during the shutdown, though Fed Governor Christopher Waller recently signaled support for another reduction.

As tracked by CME’s FedWatch Tool, the odds of a December cut sit near 50%.

Bitcoin finds support

Bitcoin (COIN:BTCUSD) saw a bounce on Wednesday after a slide that erased its year-to-date gains. Risk sentiment has been undermined by the broader market’s discomfort with the AI theme and the uncertain outlook for U.S. rates.

According to Reuters, U.S. Bitcoin-linked ETFs have seen around $3.7 billion in outflows since October 10, when renewed U.S.-China trade tensions rattled markets. Data from CoinGecko indicate that total cryptocurrency market capitalization has shrunk by roughly $1.2 trillion over the past six weeks.

The U.S. dollar nudged higher on Wednesday as fragile global sentiment continued to support safe-haven flows, though the currency’s advance was contained with markets awaiting Thursday’s rescheduled U.S. employment report.

By 04:15 ET (09:15 GMT), the Dollar Index — which measures the greenback against six major peers — was up 0.1% at 99.552, close to a one-week peak.

Risk aversion underpins the dollar

Equity markets worldwide have come under pressure this week amid renewed anxiety about lofty valuations in AI-linked tech stocks. This shift toward risk aversion has funneled investors into U.S. Treasuries, lifting the dollar.

Nvidia (NASDAQ:NVDA) remains the key focus for traders, with the chipmaker’s earnings release after the close expected to have an outsized impact on sentiment, given its central role in the AI boom.

Analysts at ING warned of the fragility of the current setup, noting: “The magnificent seven tech stocks are around 7% off their highs – a drop in the ocean compared to the 70% rally since April. But the understandable fear is that this is a very crowded trade and that a casual walk to the exit could turn into something less orderly should cause be found.”

Concerns about the economic outlook have added to caution. Jobless-benefit data released Tuesday showed a sharp increase in continuing claims between mid-September and mid-October.

The delayed September nonfarm payrolls report — pushed back because of last month’s U.S. government shutdown — will be released Thursday. Markets are looking for clues on employment strength and wage growth. A soft print would likely boost bets on a Federal Reserve rate cut.

ING said: “Tomorrow’s release of the delayed September jobs report will probably be the best chance for the dollar to go lower this week. Should the jobs data fail to swing the market towards a Fed cut in December (currently 50% priced), then pressure remains on equity markets.”

Pound dips after inflation cools

In Europe, EUR/USD slipped to 1.1577, near a one-week low. The eurozone’s final October CPI reading is expected later in the day, with a slight easing in inflation likely reinforcing expectations for the ECB to hold rates steady next month.

ING added: “Expect continued narrow ranges for EUR/USD, but a move sub 1.1560/65 could cause some intraday trouble.”

GBP/USD weakened 0.1% to 1.3136 after UK inflation slowed to 3.6% in October from 3.8%, raising the probability of a Bank of England rate cut in December.

ING noted: “We expect sterling to remain fragile heading into the Budget.”

Finance minister Rachel Reeves is expected to outline tens of billions in measures at the Nov. 26 Budget to meet fiscal targets.

Yen trades near nine-month low

In Asia, USD/JPY ticked up 0.1% to 155.67, after touching a nine-month high on Tuesday. Long-term Japanese government bond yields have surged to levels not seen in decades as doubts grow about the sustainability of Japan’s expansionary fiscal stance.

USD/CNY firmed slightly to 7.1098, while AUD/USD fell 0.4% to 0.6483 even as wage growth in Australia held steady in the third quarter — reinforcing expectations the RBA will keep interest rates unchanged.

European markets were mostly unchanged on Wednesday as investors adopted a cautious stance ahead of highly anticipated earnings from tech heavyweight Nvidia (NASDAQ:NVDA), a release widely expected to shape sentiment for the days ahead.

At 08:05 GMT, Germany’s DAX edged up 0.1%, France’s CAC 40 slipped 0.1%, and the UK’s FTSE 100 was little moved.

Nvidia results in focus

Fears over stretched valuations in AI-linked tech stocks have kept global markets on alert this week.

Nvidia, the semiconductor giant seen as the face of the artificial intelligence boom, has seen its share price surge by roughly 1,000% since late 2022, when OpenAI launched ChatGPT — propelling it past the $5 trillion market-cap milestone.

The company is set to report its latest quarterly results after the market close, and investors are waiting to see whether its guidance can live up to sky-high expectations.

In Europe, Smiths Group (LSE:SMIN) posted steady first-quarter growth and unveiled a new £1 billion share buyback that will begin once its current £500 million programme concludes.

Jet2 (LSE:JET2) reported another set of record interim results, with passenger numbers, revenue and profit all reaching new highs despite continued volatility in late bookings.

Sage Group (LSE:SGE) delivered strong full-year numbers to September 2025, with its push into AI-enhanced and cloud-based software helping underpin future growth prospects.

UK CPI cools in October

UK consumer inflation eased to 3.6% in October, down from 3.8% the previous month, boosting expectations that the Bank of England could cut interest rates at its December meeting.

The BoE held rates earlier this month in a narrow 5-4 vote, highlighting a split among policymakers that the latest inflation drop could help resolve.

More inflation updates are due later in the session, this time from the eurozone, where price growth is expected to align closely with the European Central Bank’s 2% target.

Oil edges lower as US inventories increase

Crude prices drifted lower after fresh US inventory data pointed to rising supply.

Brent fell 0.6% to $64.48 a barrel, while WTI futures were down 0.6% at $60.30.

Industry-group figures from the American Petroleum Institute showed crude stockpiles rising by 4.45 million barrels in the week to November 14. Gasoline inventories increased by 1.55 million barrels and distillates by 577,000 barrels.

Official US government data is due later on Wednesday.

UK equities moved lower on Wednesday, mirroring declines across major European markets, while the pound continued to soften and fresh data showed inflation cooled in October—though not quite as much as economists had expected.

By 08:54 GMT, the FTSE 100 was down 0.2%, and the pound had slipped 0.2% against the US dollar to 1.31. On the continent, Germany’s DAX also lost 0.2%, while France’s CAC 40 dropped 0.6%.

UK inflation slows, but remains slightly above forecasts

Official figures released Wednesday showed annual UK inflation easing to 3.6% in October, down from 3.8% in September but marginally above the consensus estimate of 3.5%.
The reading marks the lowest level since May, though it still sits well above the Bank of England’s 2% target. The smaller-than-expected decline raises the chances the central bank will cut rates at its final policy meeting of the year next month.

FTSE 100 movers

In corporate developments, WH Smith PLC (LSE:SMWH) said CEO Carl Cowling has resigned with immediate effect following an independent Deloitte review that uncovered issues in its North American division. Cowling has also stepped down from the board.

Smiths Group PLC (LSE:SMIN) reported 3.5% organic revenue growth for the quarter to 31 October and announced a new £1 billion share buyback to be completed by the end of 2026, building on its existing £500 million programme. The initiative will return “a large portion” of proceeds from the sale of Smiths Interconnect to Molex Electronics Solutions.

Workspace Group PLC (LSE:WKP) posted underlying net rental income of £58.6 million, unchanged year over year, while trading profit after interest slipped 6.4% to £30.6 million. EPRA NTA fell 6.8% to £7.21 after a 3% like-for-like valuation drop. Occupancy declined 2.5 percentage points to 80%, with the rent roll down 3.3%.

Jet2 PLC (LSE:JET2) delivered record interim results, with group revenue rising 5% to £5.34 billion for the six months to 30 September. Operating profit increased 2% to £715.2 million, and statutory profit after tax reached £600.2 million.

Severn Trent PLC (LSE:SVT) reported a 56.5% jump in profit before interest and tax to £466.2 million for the half-year to 30 September, alongside an 18% rise in revenue to £1.44 billion. The water utility also confirmed a planned CEO transition in early 2026. Shares were down 1.2% in early trade.

British Land Company PLC (LSE:BLND) recorded an 8% rise in underlying profit to £155 million for the six months ending 30 September, with underlying EPS edging up 1% to 15.4p. The company raised its dividend by 1% to 12.32p per share.

Severn Trent (LSE:SVT) delivered a strong first-half performance, reporting sharply higher profits and record investment levels, while also announcing that a change in leadership will take effect in early 2026. Shares slipped 1.2% in early London trading.

For the six months to 30 September, profit before interest and tax rose 56.5% to £466.2 million, supported by an 18% increase in revenue to £1.44 billion. The company said the improvement was driven by stronger top-line growth and disciplined management of financing costs.

Capital investment reached £769 million, up 15.5% year-on-year, as the group ramped up spending across its largest-ever infrastructure programme. Severn Trent now expects its regulated asset base to climb 13% to £15.4 billion by year-end.

“The next five years will be a period of exceptional growth for Severn Trent. We have made a strong start to our largest-ever investment programme, frontloading our investments to deliver faster for customers,” said CEO Liv Garfield.
“Thanks to these early investments, we’ve upgraded our forecasts for this year’s performance incentives… and delivered an unprecedented sixth consecutive year of top-rated environmental performance.”

The group increased its expected Outcome Delivery Incentive (ODI) reward for FY26 to at least £40 million, up from £25 million previously, and reaffirmed its regulatory return target of around 13% for the current year.

Looking ahead, Severn Trent aims to double adjusted EPS by FY28 and grow its regulatory asset base to £21.9 billion by the end of the 2025–2030 AMP8 period. The company also expects to achieve roughly 90% of its ODI metrics this year, while targeting large reductions in storm overflow discharges and continued progress on leakage.

Alongside the results, Severn Trent confirmed that Garfield will step down at the end of the year. James Jesic, currently capital and commercial services director, will assume the role of CEO on 1 January 2026.

Jefferies analyst Ahmed Farma said the upgraded guidance — including “ODIs of at least £40m, up from £25m previously” — indicates more than 5% potential upside to consensus profit before tax. He also noted that “the focus today [is] on CEO change,” calling Garfield’s departure significant given her long tenure and industry standing.

Separately, RBC Capital Markets analyst Alexander Wheeler described the half-year figures as “a strong start to AMP8,” saying the boosted ODI expectations and improved cost efficiency reflect solid business momentum. However, he cautioned that Garfield’s upcoming exit “will likely overhang the shares in the short term,” even though the broker considers Jesic “a great option to replace Liv going forward.”