Asian Markets Brace for Pressure as Tech Drags Wall Street
Asian equities are anticipated to face downward pressure on Tuesday following a tech-driven sell-off on Wall Street. Traders repositioned ahead of Nvidia Corp.’s earnings, causing equity futures to fall in Japan and Hong Kong, while Australia saw little change.
In the US, major tech stocks declined, dragging the market near its all-time highs. The S&P 500 edged lower despite gains in over half of its constituent shares, a result of the tech giants’ weakness. Contrasting this trend, the Dow Jones Industrial Average reached a record high.
Investors continue to monitor US policymakers for indications of an interest rate cut next month. Fed Bank of San Francisco President Mary Daly supported rate cuts, while Richmond Fed President Thomas Barkin acknowledged inflation risks but backed "dialing down" rates. US Treasury yields rose slightly, and the dollar strengthened.
Nvidia’s upcoming earnings report is seen as a potential market mover. Analysts anticipate a strong performance, but any disappointment could pose risks. Options trading suggests a possible 9% swing in Nvidia’s stock either direction post-report.
Elsewhere, China’s trade disputes with Canada over new tariffs add to the global economic tensions. Meanwhile, US inflation data due this week may affirm expectations for imminent rate cuts.
September’s historical volatility is a caution for investors, and key indicators like Nvidia’s earnings and PCE inflation data could influence market movements. In commodities, oil prices dipped slightly early Tuesday, while gold remained stable.
Main Market Moves:
- Tech stocks drag Wall Street lower
- Asian equities set to fall
- US Treasury yields rise
- Oil edges lower; gold steady
This story was produced with Bloomberg Automation. For more updates, visit bloomberg.com.
Original Story https://www.livemint.com/news/asian-stocks-set-to-fall-as-tech-drags-wall-street-markets-wrap-11724712997852.html
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