Asian shares rose despite a downturn in technology stocks causing Wall Street to fall, marking the S&P 500’s worst losing streak since the beginning of the year. U.S. futures experienced a drop, while oil prices saw an increase. Tokyo’s Nikkei 225 climbed 0.3%, with the Hang Seng in Hong Kong and the Shanghai Composite index also making gains. South Korea’s Kospi led the region with a surge of 1.8%, with Australia’s S&P/ASX 500 rising by 0.6%.
The S&P 500 suffered a 0.6% loss, dropping to 5,022.21, marking a 4.4% decrease since achieving a record high late last month. Slumping technology stocks were a result of ASML reporting weaker orders than anticipated, leading to a 7.1% decrease in their U.S. stock trading. Despite stronger profit reports from companies such as United Airlines, tech weakness overshadowed these positive performances. Decreases in oil prices helped alleviate concerns about inflation, which in turn led to a reduction in Treasury yields.
Investors saw a reprieve as the 10-year Treasury yield dropped to 4.58%, with the two-year yield also falling. Following indications of interest rate stability from the Federal Reserve, expectations for multiple rate cuts diminished, with traders now predicting only one or two cuts this year. As businesses look to maintain their stock price momentum, they will need to deliver robust profits. Market movements also reflected changes in other sectors, such as a 7.4% decrease in Travelers and an 8.1% drop in J.B. Hunt Transport Services due to weaker-than-expected results. Ultimately, market fluctuations and investor sentiment continued to steer the trajectory of global markets.
