Global Markets Reel as Tesla Earnings Disappoint, Oil Prices Edge Up

Global stocks fell on Wednesday as Tesla and European luxury brands reported disappointing earnings. Oil prices rose slightly despite remaining near six-week lows. The U.S. dollar weakened while the Japanese yen strengthened. The Dow, S&P 500, and Nasdaq all dropped, led by losses in tech stocks. Economic indicators are being closely watched.

Global stocks took a hit on Wednesday following disappointing earnings reports from Tesla and European luxury brands. Oil prices saw a slight uptick after trading near six-week lows due to weak summer demand. The U.S. dollar edged lower, while the yen hit a seven-week high ahead of a central bank meeting.

Analysts pointed to underwhelming earnings as a significant factor. 'Tesla's earnings were particularly disappointing,' said Garrett Melson of Natixis Investment Managers Solutions. This sentiment was reflected across Asian and Japanese markets, with MSCI's index down 1.1% and Japan's Nikkei falling 1%.

On Wall Street, the major indexes declined, weighed down by losses in consumer discretionary, communication services, and tech stocks. Tesla's shares dropped nearly 12%, marking its lowest profit margin in five years. Other tech giants, including Nvidia, Alphabet, Amazon, and Microsoft, also saw declines.

(With inputs from agencies.)