Global Markets Tumble Amid Trade Curbs and Yen Intervention

Global stock markets mostly declined on Wednesday, influenced by looming U.S. trade restrictions and suspected yen intervention by Japanese officials. Treasury yields rose as U.S. Federal Reserve President John Williams called for more disinflation progress. Meanwhile, chipmakers slumped amid possible U.S.-China tech restrictions, and oil prices saw gains.

World stock indexes mostly fell on Wednesday, as Wall Street struggled with the prospect of U.S. trade curbs. The yen rose sharply, likely due to another intervention from Japanese officials aiming to support the currency from multi-decade lows.

Treasury yields climbed after New York Federal Reserve President John Williams acknowledged progress against inflation but emphasized the need for further improvement before cutting interest rates, clouding the likelihood of a July rate cut.

The S&P 500 lost 50.70 points (0.90%) to 5,616.01, while the Nasdaq Composite dropped 323.94 points (1.72%) to 18,185.40. Chipmaker stocks slumped amid reports of potential U.S. import restrictions on technology to China, compounded by lukewarm statements from Donald Trump on defending Taiwan. MSIC's global stock gauge also declined.

Nvidia shares fell nearly 6% following a turbulent Asian session for Taiwan's TSMC. Investors are cautiously optimistic about a possible second Trump presidency.

The yen surged, posting abrupt gains after suspected interventions totaling around 6 trillion yen last week, according to Bank of Japan data. The dollar index fell 0.49%, while gold prices hit an all-time high, aided by the weaker dollar.

Benchmark U.S. Treasury yields rose marginally, and oil prices gained, driven by U.S. crude climbing 1.75% to $82.17 a barrel and Brent up 1.22% to $84.75 per barrel.

(With inputs from agencies.)