Global markets fall ahead of Nvidia earnings

Asian indexes fell 0.2%, marking a fourth straight day of losses. S&P 500 and Nasdaq futures slipped before the open, reflecting caution after a selloff that erased roughly $1.6 trillion in global equity value in recent days.

The Bloomberg World Exchange Market Capitalization Index dropped to $144.7 trillion, reflecting broad declines across the US and Europe. Investors are focused on Nvidia, whose earnings will act as a crucial signal for the wider AI sector amid growing doubts about elevated valuations.

Crypto assets also weakened. Bitcoin briefly fell below $90,000 before recovering some ground. Volatility has climbed as sentiment deteriorates and risk assets retreat. Ethereum also traded lower.

Markets are reassessing the outlook for US monetary policy. Derivatives now show the probability of a December Fed rate cut slipping below 50%. Fed officials have repeatedly warned about the risks of easing too soon as inflation pressures persist. At the same time, Fed governor Christopher Waller again voiced support for a rate cut, highlighting divisions within the central bank.

The shift in sentiment is visible in volatility. The VIX rose above 24, a level that typically concerns traders. The move reflects stronger demand for hedging and mounting fears of further downside in equities.

Several major investors see signs of a correction. Bob Diamond, former Barclays chief and CEO of Atlas Merchant Capital, said the recent moves look like a healthy pullback rather than the start of a bear market. But Davide Serra, founder of Algebris Investments, said the odds of a deeper decline are rising.

In fixed income, the yield on 10-year US Treasuries held near 4.12%. In Asia, Japanese bonds firmed slightly after a 20-year auction, while Australian yields edged lower.

In commodities, oil slipped as US inventories rose, gold fell about 0.3%, and the dollar held steady against major currencies.

Investors remain cautious ahead of Nvidia’s results. The company has grown so large that its market value now exceeds the combined capitalization of entire sectors. Analysts say the report could set the tone for trading in the coming weeks and shape demand for AI-related assets.