Wall Street Today | Nvidia Says Gaming Market Conditions Are 'Challenging,' Q3 Forecast Misses

Central banks that hike borrowing costs too aggressively to tame supply-driven inflation risk exacerbating price gains, according to Nobel laureate economist Joseph Stiglitz. Higher rates make solving supply snarls harder, he says.

US pending home sales fell in July for the sixth time this year to the lowest level since the start of the pandemic, extending the housing market's sharp downturn as high borrowing costs sideline prospective buyers. The National Association of Realtors' index of contract signings to purchase previously owned homes decreased 1% from a month earlier to 89.8, according to data released Wednesday.

The benchmark 10-year Treasury yield climbed on Wednesday to as high as 3.12%, the highest level since July 28, as medium-term inflation expectations continue to rise. "The market has become more pessimistic on the Fed hitting inflation goals, despite the hawkish rhetoric," Steve Englander of Standard Chartered Bank said.

Within 48 hours of comments from Saudi Arabian Energy Minister Prince Abdulaziz bin Salman that OPEC might have to curtail production, fellow members Iraq, Algeria, Kuwait, Equatorial Guinea and Venezuela released statements expressing their support.