Global Markets Tumble Amid Economic Data & Investor Anxiety

MSCI's global equities gauge dropped due to mixed economic data and a choppy Wall Street session. U.S. Treasuries and Japan's yen saw a rise as investors sought safe havens. Key factors included a significant devaluation of Nvidia shares and concerns about a potential economic slowdown.

MSCI's global equities gauge saw a decline on Wednesday, driven by mixed economic data and an unsettled Wall Street following Tuesday's significant sell-off. Investors gravitated towards safe haven assets like U.S. Treasuries and Japan's yen.

The yield curve between two-year and 10-year Treasury notes briefly turned positive, hinting at bearish economic signals. Wall Street registered its largest drop since early August, largely due to profit-taking in growth stocks and Nvidia's record $279 billion valuation drop.

Commerce Department data showed an unexpected rise in new orders for U.S.-manufactured goods in July. Meanwhile, job openings hit a 3-1/2-year low, signaling a weakening labor market. These developments have led traders to anticipate a potential half-percentage-point interest rate cut by the Federal Reserve.

Oil prices experienced a third consecutive day of decline amid concerns over demand, particularly due to China's sluggish economic outlook. Crude oil fell to $69.83 per barrel, and Brent decreased to $73.27 per barrel. Conversely, gold prices saw a slight rise following recent losses.

(With inputs from agencies.)