US stock markets opened lower on Wednesday, influenced by rising treasury yields and investor apprehension ahead of key economic data releases. The Dow Jones Industrial Average decreased by 329.13 points, or 0.77%, reaching 42,348.11. Similarly, the S&P 500 fell by 34.21 points, or 0.58%, settling at 5,906.25, while the Nasdaq Composite, which is heavily weighted with technology stocks, dropped by 117.06 points, or 0.61%, to 19,025.65.

This downturn in major indices reflects ongoing market sensitivity to the Federal Reserve’s interest rate policies. Treasury yields continued their upward trend, with the 10-year US note yielding 4.543%, an increase of 6.2 basis points. Higher yields typically exert downward pressure on equity valuations, particularly affecting growth and tech stocks due to their greater sensitivity to borrowing costs.

In the commodities sector, gold and oil prices experienced modest gains. Gold increased by $24.50, or 0.75%, to $3,309.10 per ounce, as investors sought to hedge against market uncertainties. Oil prices also rose, with West Texas Intermediate (WTI) crude climbing $0.69, or 1.11%, to $62.72 per barrel, bolstered by expectations of a tightening global supply.

Market volatility also saw an uptick, with the CBOE Volatility Index (VIX) increasing by 6.52% to 19.27. In currency markets, the euro strengthened slightly against the US dollar, with the EUR/USD pair rising by 0.43% to 1.133, reflecting differing central bank policy outlooks between the US and the eurozone.

Earlier on Wednesday, US stock futures indicated a decline due to disappointing corporate earnings and persistent trade concerns affecting investor sentiment. Futures for the S&P 500 were down by 0.5%, while those for the Dow Jones Industrial Average decreased by 0.8%. Nasdaq futures also fell by 0.5%, suggesting a weak start to the trading session.

Retail giant Target reported lower-than-expected first-quarter sales and issued a cautious outlook for the year, citing pressure from consumer pullback related to trade uncertainty and tariff concerns. The company now anticipates a low-single-digit decline in sales for 2025, with adjusted earnings per share projected between $7 and $9, a downgrade from its previous forecast of $8.80 to $9.80 in March.

Target’s revised guidance highlights growing concerns within the retail sector, where companies are dealing with tariff-related costs and unclear economic signals. While Walmart has acknowledged potential price increases to offset import taxes, investors are closely monitoring whether further tariff rollbacks from President Donald Trump could provide relief. Recent market rebounds have been supported by Trump’s decision to pause or reduce some tariffs as trade negotiations progress.

However, not all retail news was negative. Lowe’s reported better-than-expected earnings and revenue, reaffirming its full-year forecast and boosting investor confidence in the home improvement sector.

Additionally, oil prices increased by nearly 1% following reports from CNN citing intelligence officials who believe Israel may be preparing an attack on Iranian nuclear facilities. Escalations in Middle East tensions often lead to higher oil prices due to potential supply disruptions. US benchmark crude rose 50 cents to $62.53 per barrel, while Brent crude climbed 48 cents to $65.86.

President Trump has also warned of potential military action against Iran if nuclear talks fail, while Iranian officials have indicated they might advance their uranium enrichment toward weapons-grade levels if a deal is not reached.

In overseas markets, European indices showed mixed performance by midday. Germany’s DAX slipped 0.2%, France’s CAC 40 declined 0.5%, while the FTSE 100 in London remained flat.

In Asia, Japan’s Nikkei 225 fell 0.6% to 37,298.98, pressured by ongoing US tariffs and slowing export growth. Official data indicated that Japanese exports to the US fell nearly 2% year-on-year in April, with overall global export growth slowing to 2% from 4% in March.

Elsewhere in Asia, Hong Kong’s Hang Seng rose 0.6% to 23,827.78, and China’s Shanghai Composite gained 0.2% to 3,387.57. Australia’s ASX 200 jumped 0.5%, South Korea’s Kospi advanced 0.9%, Taiwan’s Taiex rose 1.3%, and India’s Sensex added 0.5%.

In currency markets, the US dollar weakened to 143.81 Japanese yen from 144.51, while the euro edged higher to $1.1320 from $1.1284, reflecting continued volatility in foreign exchange markets as they react to trade and geopolitical developments.