US Fed reduced interest rates last week, but Chair Jerome Powell signalled that the move could be the last cut for this year.
In Europe, the benchmark STOXX 600 slipped 1.5 percent. France’s CAC 40 fell 1 percent and Germany’s DAX declined 2.1 percent.
The annual conference began on Thursday, with traders closely tracking Powell’s remarks for indications of a possible rate cut in September.
Traders will closely watch Powell’s remarks on Friday for signals on a possible rate cut in September.
US Futures rally was seen after US and China announced suspension of high tariffs for 90 days.
Fresh labour market data provided the market with a shot of optimism. Employers added 177,000 jobs in April, comfortably topping economists’ forecast of 133,000, although still down from March’s 228,000 figure.
US index Futures declined amid rising US-China trade tensions and fresh export restrictions on Nvidia chips.
While tech-heavy Nasdaq futures are higher, the tariff relief on electronics is short-lived, as Trump clarified on Sunday that the items were "just moving to a different Tariff bucket," suggesting more changes could follow.
The rebound is seen as most of the markets globally advanced on Tuesday, recouping some of the losses from previous sessions on global trade war fears.
Concerns of an adverse impact on the US economy due to Trump's tariffs plans has wrecked havoc in the US stock markets as selling continues on Wall Street.
Adding to the unease, a weaker-than-expected jobs report pointed to a potential cooling in the U.S. economy. Nonfarm payrolls increased by just 151,000 in February, missing the 170,000 estimate.
The market is betting on a slight chance of a Fed rate cut by 25 basis points at Wednesday's meeting, with a cut fully priced in for September.
The Dow Jones Industrial Average (.DJI), opens new tab rose 134.21 points, or 0.34%, to 40,003.59, the S&P 500 (.SPX), opens new tab gained 6.17 points, or 0.12%, to 5,303.27 and the Nasdaq Composite (.IXIC), opens new tab lost 12.35 points, or 0.07%, to 16,685.97.
This ascent was driven by recovering investor sentiment from the pandemic, rising corporate profits, cooling inflation, and increased speculation about interest rate cuts.
US markets extend gains supported by Nvidia's $2 trillion market cap, European markets also trade in green. Japan's Nikkei crossed its 1989 peak on February 22 while the Indian indices were dragged down on February 23 owing to higher selling in the IT, metals and banking
Multiple factors have lined up to suggest tough days ahead for the markets
Overnight, the Dow Jones Industrial Average and S&P 500 index rose modestly, with the blue-chip Dow registering its eighth straight day of gains.
The S&P 500 was up 0.1% in morning trading after slumping the prior day. The Dow Jones Industrial Average was up 3 points, or less than 0.1%, at 33,687, as of 10:30 a.m. Eastern time
The Dow Jones Industrial Average was up 66 points, or 0.2%, at 34,039, as of 11 a.m. Eastern time, and the Nasdaq composite was 0.4% lower. They also were drifting between gains and losses.
The S&P 500 fell 0.2% as of 10:36 a.m. Eastern. The Dow Jones Industrial Average fell 60 points, or 0.2%, to 33,450. The Nasdaq fell 0.2%.
The S&P 500 fell 0.7% as of 11:48 a.m. Eastern. The Dow Jones Industrial Average fell 187 points, or 0.6%, to 33,049 and the Nasdaq fell 1.1%.
The Dow Jones Industrial Average is flat just after the open, while the technology-heavy Nasdaq composite fell 0.6%.
The S&P 500 fell 0.5% as of 10:07 a.m. Eastern. The Dow Jones Industrial Average fell 104 points, or 0.3%, to 32,546 and the Nasdaq fell 0.4%.
The Dow Jones Industrial Average fell 0.65%, to 29,034.83, the S&P 500 lost 0.61%, to 3,618.17 and the Nasdaq Composite dropped 0.53%, to 10,681.01.
The S&P 500 rose 0.5% as of 10:19 a.m. Eastern. The Dow Jones Industrial Average fell 2 points, or less than 0.1%, to 29,585 and the Nasdaq rose 1.4%.