COMEX copper came under pressure on Wednesday morning in Asia, tracking a sharp fall in US equities and a stronger dollar. The move lower reflects growing caution across global markets as investors assess the impact of rising inflation and interest rates on economic growth and demand for industrial metals.

Wall Street ended firmly in the red on Tuesday despite recovering slightly from the session lows. The Nasdaq fell 271.11 points, or 1%, to 26,099.77, while the Dow Jones declined 419.02 points, or 0.8%, to 52,766.88. The S&P 500 dropped 54.67 points, or 0.7%, to 7,631.47.

At the same time, elevated global bond yields have kept inflation and interest-rate concerns firmly in focus. Expectations of higher borrowing costs could weigh on economic activity if central banks are forced to keep rates higher for longer, potentially reducing demand for industrial commodities such as copper.

Against this backdrop, investors are keeping a close watch on global growth prospects and currency movements. COMEX copper was last quoted at $6.51 per pound, down 1.31% on the day.