US markets are feeling the pressure from increasing treasury yields

Stocks were broadly lower on Wednesday, with concerns around inflation and Fed rate cut timing weighing on the market. Despite another strong performance from Nvidia, the Dow Jones closed 1.06% lower, the S&P 500 fell 0.74%, and the Nasdaq finished 0.58% lower.

Nvidia, a tech darling, helped limit the decline in the tech sector, finishing 0.8% higher after initially opening lower. The company has seen a 20% increase in its stock price since its recent earnings report.

US bond yields continued to rise for a second consecutive day, following weak demand at new government debt auctions. This has led investors to lower their expectations for Federal Reserve rate cuts, with a 54% chance that rates will hold steady in September.

In M&A news, BHP declined to make a firm offer for Anglo American, walking away from what would have been the biggest mining deal in over a decade. Meanwhile, Marathon Oil saw its shares jump more than 8% after ConocoPhillips agreed to acquire the company in an all-stock deal worth about $17 billion.

In European markets, Sterling reached a 21-month high against the euro due to inflationary pressures in the UK. Orange juice prices have also hit record highs, driven by adverse weather conditions and disease in Brazil.

Overall, all sectors finished in the red, with Energy being the worst performer. Futures are pointing to a 0.7% fall, while the Australian dollar was buying 66.09 US cents. Gold lost 0.64%, silver added 0.73%, copper lost 1.32%, and oil fell 0.75%. European markets closed lower, while Asian markets had mixed results.