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Japan's central bank said that it won't be increasing interest rates amid unstable markets, sending global stocks rising Wednesday.

Japan's Nikkei closed higher, Europe's Stoxx 600 benchmark is gaining, and U.S. stock futures are rising after the Bank of Japan calmed investor fears of the unwinding of the carry trade and said it wouldn't raise interest rates when capital markets are "extremely volatile."

Deputy Gov. Shinichi Uchida said in a speech in Hokkaido, Japan, that the central bank "will not raise its policy interest rate when financial and capital markets are unstable."

His comments come a week after Bank of Japan Gov. Kazuo Ueda said he would continue to keep raising interest rates despite the tepid consumer spending in the country. The Bank of Japan became the last major central bank to abandon its negative interest rate policy in March and last Wednesday surprised markets when it raised its policy rate by 10 basis points to 0.25%, only its second rate hike in the last 17 years.

Fears of the reversal of the Japanese yen carry trade have been cited as one factor fueling Monday's global stocks rout, apart from worries of a U.S. recession and tech giants' overspending on artificial intelligence (AI) initiatives.

A carry trade is an investment strategy that involves borrowing the currency of a country where interest rates are low, like Japan, and investing it in a place where interest rates are high, such as the U.S. Rising interest rates in Japan would threaten that trade.

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The Walt Disney Co. (DIS) reported third-quarter revenue and profit above analysts' estimates; Novo Nordisk (NVO) shares are falling in premarket trading after the maker of the Ozempic and Wegovy weight-loss drugs posted a second-quarter miss and cut its operating income outlook amid supply constraints; CVS Health (CVS) shares are edging lower after a Q2 revenue miss and another full-year profit guidance cut; global markets are rallying after the Bank of Japan calmed investor fears about the fading allure of the carry trade and said it wouldn't raise interest rates while capital markets were “extremely volatile"; and Super Micro Computer (SMCI) shares are tanking after the server company, which also announced a 10-for-1 stock split, posted results that missed analysts' estimates. U.S. stock futures are rising after major indexes staged a broad-based recovery Tuesday, a day after recording their biggest declines in nearly two years. Here's what investors need to know today.

The Walt Disney Co. (DIS) posted third-quarter results that beat Wall Street estimates, boosted by box office hits like "Inside Out 2," as its streaming business turned to a profit for the first time. For the three months through June, the entertainment giant, which is raising streaming prices of Disney+, Hulu, and ESPN+ starting in October, reported revenue of $23.2 billion and diluted earnings per share of $1.43, both beating consensus forecasts of analysts polled by Visible Alpha. "This was a strong quarter for Disney, driven by excellent results in our Entertainment segment both at the box office and in [Directed-to-Consumer], as we achieved profitability across our combined streaming businesses for the first time and a quarter ahead of our previous guidance," Chief Executive Officer (CEO) Bob Iger said. Disney shares are little changed in premarket trading.

Novo Nordisk (NVO) shares are falling 3% in premarket trading after the maker of the Ozempic and Wegovy weight-loss drugs reported lower-than-forecast second-quarter revenue and cut its 2024 operating income guidance amid "periodic supply constraints and related drug shortage notifications across geographies." The Danish pharmaceutical firm reported a 25% year-over-year revenue gain to 68.06 billion Danish kroner ($9.96 billion), missing estimates of DKK68.47 billion. Novo Nordisk cut its operating profit outlook for the full year, projecting 20% to 28% growth at constant exchange rates from its prior forecast of 22% to 30%, even as it lifted its 2024 revenue range to between 22% and 28% from a previous range of 19% to 27%.

CVS Health (CVS) shares are edging lower in premarket trading after the pharmacy giant slashed its 2024 earnings guidance again amid increased medical costs and announced the departure of the head of its Aetna unit. CVS reported revenue for the second quarter of $91.23 billion, below forecasts, but higher-than-expected earnings per share (EPS) of $1.41. It also lowered its 2024 EPS guidance for a third straight quarter, to a range of $4.95 to $5.20 from at least $5.64. The company also said that "based on the current performance and outlook for the Health Care Benefits segment," Aetna President Brian Kane is leaving, and CVS CEO Karen Lynch will take over management of the business and oversee it with Chief Financial Officer (CFO) Tom Cowhey. 

Japan's Nikkei closed higher Wednesday, Europe's Stoxx 600 benchmark is gaining, and U.S. stock futures are rising after the Bank of Japan calmed investor fears of the unwinding of the carry trade and said it wouldn't raise interest rates while capital markets were "extremely volatile." Fears of the reversal of the carry trade have been cited as one factor fueling Monday's global stocks rout, apart from worries of a U.S. recession and AI overspending by tech giants.

Super Micro Computer (SMCI) shares are sinking 14% in premarket trading after the server company reported quarterly earnings that fell short of analysts' expectations, issued a light profit forecast, and disclosed a surprise drop in adjusted gross margin, as the cost of transitioning to more expensive artificial intelligence (AI) chips weighed on the bottom line. The company also announced a 10-for-1 stock split that takes effect Oct. 1.

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The Federal Government has vowed to take appropriate action against any country that might be behind the ongoing #EndBadGovernance protests in Nigeria.

Minister of Foreign Affairs, Ambassador Yusuf Tuggar, made this known while addressing members of the Diplomatic Corps in Abuja on Wednesday, August 7.

According to the minister, “While the government continues to work hard through the various reform programs and measures to address the challenges facing Nigeria and Nigerians, it is pertinent to remind us that no nation tolerates foreign interference in its domestic affairs and that of its citizens. Nigeria is not an exception.

The government would take appropriate action against any foreign entity residing in Nigeria that is found to have directly or indirectly supported the protesters by whatever means or seeks to interfere in the internal affairs of the country.

Nigeria cherishes and continues to value the cordial relationships that happily subsist between her and your countries and organisations and will not do anything to undermine or take for granted such relationships.

Indeed, more than any time before now, we solicit your understanding and collaboration in the ongoing efforts of the Federal government in addressing the economic challenges confronting the country, to achieve a better life for every Nigerians at home and abroad.”

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The dramatic selloff Monday in cryptocurrencies, which fell in tandem with stocks amid concerns about a slowing U.S. economy, not only made investors nervous, but also tested the case of bitcoin as a safe-haven investment.

Here's what experts say happened over the past few days and what lies ahead for the crypto markets as the U.S. navigates fears of economic uncertainty.

Bitcoin (BTCUSD) isn't quite as divorced from the price swings in traditional markets as was once thought, calling into question its proposition as digital gold.

As the turmoil in stocks spread further to crypto markets, bitcoin fell more than 18% on Monday to drop below $50,000, a level not seen since February. While bitcoin recovered to around $56,000 on Tuesday, it's still down nearly 20% since early last week.

The rest of the crypto market fared even worse on Monday, as alternative crypto assets still tend to follow bitcoin's lead rather than move on their own accord.

However, ether's (ETHUSD) near-26% drop to a low of $2,116 could be attributed to investors getting nervous about large movements of funds from trading firm Jump Trading to various crypto exchanges that started on July 25, according to data blockchain intelligence firm Arkham Intelligence.

In the short-term there could be more volatility in store for crypto assets.

Bitwise's Chief Investment Officer Matt Hougan suggests watching out for a few signs that could show where the crypto markets are headed—forced crypto liquidations as leveraged traders scramble amid a price drop, financial health of crypto firms and flows for crypto spot exchange-traded products.

Should there be a recession in the U.S., bitcoin will decline, though not as much as it has in the past, Grayscale's Head of Research Zach Pandl said.

"Downside risks to token prices are lower than in the previous cycle, in our view, due to relatively low altcoin valuations, limited credit/leverage in crypto markets, and institutional demand for spot #Bitcoin and #Ethereum ETPs," Pandl posted on X.

Analysts at Bernstein are more optimistic. "If rate cuts and monetary liquidity is the usual template response to U.S. recession fears, we expect ‘hard assets’ such as bitcoin (digital gold) to reprice up," the analysts wrote, according to .

Hougan suggests investors ignore short-term price cues and focus on the long-term fundamentals of bitcoin investing.

He compared the recent volatility in markets, both stocks and crypto, to the sharp decline seen on March 12, 2020 when the world realized COVID-19 was going to be a serious issue. After falling 37% on that day, bitcoin went on to have a tremendous bull run and saw greater than 1,000% gains over the next 12 months.

"In retrospect, March 12, 2020 wasn’t a time to panic," wrote Hougan in a recent note. "It was the best buying opportunity for bitcoin in a decade."

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U.S. consumers accumulated debt at a slower rate in the second quarter, but the amount of credit card holders falling behind on their bills hit levels not seen in more than a decade, according to data released Tuesday.

According to the Federal Reserve Bank of New York's Quarterly Report on Household Debt and Credit, 10.93% of credit card accounts were delinquent by more than 90 days, the highest it's been since the first quarter of 2012. Auto loans delinquencies of 90+ days hit 4.43%, the highest level since the first quarter of 2021.

“The consumer looks to be in a decent place but the delinquency rates for auto loans and credit cards continue to be something that we’re keeping an eye on,” said a New York Fed researcher on a background call. 

The report showed that total household debt rose by $109 billion in the second quarter, an increase of 0.6%, down from the 1.1% rise in the first quarter.

About 3.2% of outstanding debt was in some stage of delinquency, but when compared with pre-pandemic levels, delinquencies overall were much lower.

Consumers took out mortgages at about the same pace as over the past year, though refinancing activity was limited due to high mortgage rates, and delinquency rates were still low, New York Fed researchers said. 

More homeowners turned to home equity lines of credit (HELOC) as a means of getting value from their rising home values without having to risk their already low mortgage rates, which many got when rates were at their lowest in 2022. Mortgages rates have been at decades-high levels, though have started to move lower lately amid expectations the Federal Reserve will cut interest rates soon.

These lines of credit, which use the borrower’s home as collateral, offer lower rates than credit cards. They also give homeowners access to cash without having to refinance their home, which is how homeowners generally get cash from their property values when mortgage rates are low. 

Both new HELOC lines and draws from existing accounts increased in the 2024 second quarter, economists said. While the total debt from HELOCs remained constant from the first quarter, it's still at its highest levels since the 2021 first quarter. 

“It’s a turnaround of such a long decline of a product that was maybe unappealing when a cash-out refinance at a low rate would have been more appealing for a borrower,” the New York Fed researcher said.

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