Web Trader MT5 
US stock futures were broadly flat early Wednesday after Wall Street fell for a third consecutive session. The previous session saw the Dow fall 0.2%, the S&P 500 decline 0.7%, and the Nasdaq drop 1.3%, with technology stocks leading the losses.
The main source of pressure remains the global bond sell-off, as long-term yields reached multi-year highs across major economies. Higher yields are particularly negative for growth and technology stocks because they increase borrowing costs and reduce the relative attractiveness of future earnings.
Asian markets also came under significant pressure. South Korea’s Kospi plunged 5.5%, Japan’s Nikkei 225 fell 2.6%, and China’s CSI 300 declined 2.4%. In South Korea, semiconductor stocks were hit hard, with SK Hynix down 8.6% and Samsung Electronics falling 7%.
In the UK, annual CPI inflation increased to 2.9% in July from 2.6% in June, in line with expectations.
Overall, markets remain caught between strong economic and corporate fundamentals on one side and rising bond yields, higher oil prices and persistent inflation risks on the other. The key question is whether economic growth and earnings can remain strong enough to support equities despite increasingly restrictive financial conditions.
Gold fell below $4,350 and has given up its earlier gains, despite renewed weakness in the US Dollar. Attention now turns to the July FOMC meeting minutes, due later today. Investors will examine the minutes for further clues about the extent of disagreement within the Federal Reserve and the likelihood of a more hawkish policy stance.
Markets are still pricing around a 68% probability of at least one Fed rate hike by year-end, according to CME FedWatch. Gold bulls remain hesitant to build fresh positions until there is greater clarity on Fed policy. Overall, higher oil prices, rising Treasury yields and expectations of tighter Fed policy are currently limiting gold’s upside, despite continued geopolitical risks.
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