Global Markets Navigate Fed Worries and Nvidia's Earnings Spotlight

The U.S. dollar regained strength on Wednesday, even as anxieties over Federal Reserve independence persisted. Meanwhile, European stocks experienced a modest recovery following earlier declines as markets shifted their attention to Nvidia's upcoming earnings report.

Legal challenges against U.S. Fed Governor Lisa Cook's dismissal by former President Donald Trump have stirred debates over the central bank's autonomy. Market watchers are concerned that any perceived threats to Fed independence could impact inflation expectations and policy decisions.

Attention also turns to European fiscal issues, particularly in France, where Prime Minister Francois Bayrou's controversial debt-reduction strategy backfired, prompting concerns of government instability. Despite these challenges, Nvidia's expected earnings report is anticipated to significantly impact tech-heavy U.S. stock indexes.

(With inputs from agencies.)