MSCI’s global equities gauge rose slightly after the latest US inflation data while investors waited for results from AI heavyweight Nvidia, and oil prices gave up earlier gains as investors monitored the latest discussions about reopening the Strait of Hormuz.
Data showed annual US inflation unexpectedly held steady in July, well above the Federal Reserve’s two per cent target for the 65th straight month.
The Dow Jones Industrial Average fell 96.83 points, or 0.18pc, to 53,480.54, the S&P 500 rose 1.44 points, or 0.02pc, to 7,678.98 and the Nasdaq Composite fell 40.12 points, or 0.15pc, to 26,111.88.
MSCI’s gauge of stocks across the globe rose 0.85 points, or 0.08pc, to 1,150.50 while the pan-European STOXX 600 index rose 0.02pc.
While investors in energy markets focused on Strait of Hormuz talks between Iran and Oman, shipping disruption continued in the major oil-exporting region.
US crude rose 0.02pc to $82.38 a barrel and Brent fell to $88.44 per barrel, down 0.16pc on the day.
Oil’s fluctuations also appeared to impact the bond market. US Treasury yields edged higher after the inflation data while traders also monitored Middle East developments and weighed US government plans to expand debt buybacks.
The yield on benchmark US 10-year notes rose 1.74 basis points to 4.656pc, from 4.639pc late on Tuesday, while the 30-year bond yield rose 0.87 basis points to 5.1827pc.
The two-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 1.36 basis points to 4.218pc.
Odds that rates would stay steady edged up to roughly 62pc from 60.4pc on Tuesday, while bets for a 25-basis-point interest rate hike in September dropped to 38pc from almost 40pc the day before, according to CME Group’s FedWatch Tool. However, rates are still expected to rise by year-end.
In currencies, the dollar was higher after the inflation data that slightly increased expectations among some investors for a rate hike.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.24pc to 99.15, with the euro down 0.19pc at $1.1652. Against the Japanese yen, the dollar strengthened 0.09pc to 159.31.
In precious metals, gold prices were lower after hitting their highest levels since mid-May on Tuesday. Spot gold fell 1.06pc to $4,607.16 an ounce, while US gold futures fell 0.65pc to $4,607.80 an ounce.
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