On Wednesday, US stocks fell as investors considered mixed company earnings and indications of ongoing inflationary pressures. After two days of significant gains, the benchmark S&P 500 gauge closed 0.7% down, reversing course. The heavily tech-focused Nasdaq Composite lost 0.9% of its value. The regional Stoxx 600 index ended the day 0.5% lower in Europe.

As they released their third-quarter earnings reports on Wednesday, the consumer goods corporations Procter & Gamble and Nestlé became the most recent businesses to draw attention to the impact of inflation.

In the three months leading up to September, both companies reported declining sales volumes. Nestlé CEO Mark Schneider announced that the Swiss company would raise prices even further to cover rising labor and energy costs. The strength of the dollar caused extra harm to P&G.

Investors closely monitor business guidance regarding pricing levels and the impact of rising costs. In an effort to contain price increases, central banks, led by the US Federal Reserve, have aggressively tightened monetary policy this year. However, the speed and scope of the moves have sparked worries that economies could be forced into recession.

According to figures released earlier on Wednesday, the UK's annual inflation rate increased to 10.1% in September from 9.9% in August as a result of rising food prices. The most recent reading of the consumer price index above the 10% average estimate of experts surveyed by Reuters.

Earnings reports outside of the consumer sector have been conflicting. Netflix's stock increased 13% on Wednesday after it announced encouraging numbers following Tuesday's closing bell. The streaming company stunned investors in April by revealing that subscriber growth had stopped, but on Tuesday it announced that subscriber losses had been curbed in the third quarter. More than doubling the amount of customers anticipated by the streaming company, it added 2.4 million subscribers thanks to popular shows like Stranger Things.