The three major US stock indices closed in negative territory on Wednesday. Federal Reserve Chair Kevin Warsh, speaking at a European Central Bank conference in Portugal, offered no signals regarding potential policy actions later this month but noted that inflation remains too high.

Additionally, reports that Meta Platforms, Inc. (META.US) is building a cloud infrastructure business to sell excess computing capacity from its data centers to external parties were seen as a potential inflection point for the persistently high capital expenditures of the "Magnificent Seven" tech giants, contributing to a 1.5% decline in the Nasdaq 100.

On the economic data front, the ADP report showed private sector employment increased by a seasonally adjusted 98,000 in June, down from 122,000 in May and slightly below the Dow Jones consensus estimate of 110,000.

US Markets

At the close, the Dow Jones Industrial Average fell 13.96 points, or 0.03%, to finish at 52,305.24. The Nasdaq Composite dropped 173.69 points, or 0.66%, to 26,040.03. The S&P 500 index declined 16.13 points, or 0.22%, to settle at 7,483.23.

NVIDIA (NVDA.US) shares fell 1%. Micron Technology (MU.US) shares plunged 10.5%, while SanDisk Corp. (SNDK.US) shares tumbled 10.6%. Advanced Micro Devices, Inc. (AMD.US) shares dropped 6.8%. In contrast, Meta Platforms, Inc. (META.US) shares surged 8.8%. The Nasdaq Golden Dragon China Index jumped 2.9%, with Alibaba Group Holding Limited (BABA.US) shares gaining 2%.

European Markets

The German DAX 30 index rose 64.28 points, or 0.26%, to close at 25,043.53. The UK's FTSE 100 index fell 19.51 points, or 0.19%, to 10,477.61. The French CAC 40 index dropped 66.70 points, or 0.79%, to 8,337.29. The Euro Stoxx 50 index declined 46.49 points, or 0.73%, to 6,281.60. Spain's IBEX 35 index lost 49.67 points, or 0.26%, to 19,409.03. Italy's FTSE MIB index decreased by 78.93 points, or 0.15%, to 51,603.50.

Asian Markets

Japan's Nikkei 225 index rose 0.59%, while South Korea's KOSPI index fell 2.04%.

US Dollar Index

The US Dollar Index, which measures the dollar against a basket of six major currencies, rose 0.2% to settle at 101.39. In late New York trading, one euro could buy $1.1380, down from $1.1420 the previous session. One British pound traded at $1.3278, up from $1.3255. One US dollar bought 162.53 Japanese yen, down from 162.62 yen. The dollar traded at 0.8092 Swiss francs, up from 0.8083, and at 1.4216 Canadian dollars, up from 1.4204. One dollar was worth 9.7300 Swedish kronor, up from 9.7005.

Cryptocurrencies

Bitcoin rose over 3.7% to $60,821.53. Ethereum gained over 3.95% to $1,629.66.

Crude Oil

The price for August delivery of West Texas Intermediate crude oil fell 92 cents, or 1.32%, to settle at $68.58 per barrel. The price for September delivery of Brent crude oil dropped $1.38, or 1.89%, to close at $71.57 per barrel.

Precious Metals

The spot price of gold rose to $4,031.61 per ounce. Spot silver traded at $59.102 per ounce.

Key Economic and Policy Developments

It is reported that Warsh has appointed an aide to Treasury Secretary Bessent to serve as a Fed advisor, a move that has sparked discussions about closer ties between the central bank and the Treasury.

Fed Chair Warsh stated on Wednesday that while he still believes the Fed's large balance sheet should be reduced, any significant policy adjustments on this front would take time and be communicated clearly. He emphasized that interest rate policy remains the Fed's primary tool.

US manufacturing activity expanded for a sixth consecutive month in June, though the pace slowed. A key price index saw a significant deceleration in the rate of increase.

Major South Korean banks are expanding their foreign exchange trading teams in Seoul and London in preparation for the upcoming launch of a near 24-hour trading session for the Korean won.

Kevin Hassett, a senior economic advisor to former President Trump, urged the Federal Reserve not to raise interest rates, warning it would be a macroeconomic mistake during what he termed a "supply-driven boom."

Notable Company News

SpaceX (SPCX.US) has reportedly shown investors a prototype for a handheld AI device that is thinner than an iPhone, runs a proprietary OS, integrates xAI technology, and uses a Qualcomm chip. The project is described as being in a very early stage.

According to reports, Apple (AAPL.US) is planning to launch upgraded iPad Pro models and a redesigned entry-level MacBook Pro next year, among other major products to celebrate the iPhone's 20th anniversary.

Former President Trump posted on social media that Micron Technology (MU.US) had made a historic $250 million investment into the "Trump Account," calling it the largest corporate investment of its kind and a sign his policies are working. The US Treasury announced the investment portfolio for the "Trump Account," with the default option being the State Street SPDR Portfolio S&P 500 ETF (SPYM.US). Other low-cost index ETF options will be made available later.