Stock market today: U.S. bearish as Nasdaq drops 1.5 percent ahead of Fed meeting, European and Asian markets decline
U.S. markets show bearish trend
The U.S. markets on Tuesday showed a predominantly bearish tone as the tech-heavy Nasdaq Composite declined by 1.5 percent to close at 21,314.95, dragged down by significant losses in mega-cap technology stocks such as
Nvidia
, which fell 3.5 percent. The S&P 500 also slipped 0.6 percent, finishing at 6,411.37, while the Dow Jones Industrial Average edged slightly higher by less than 0.1 percent to close at 44,922.27, supported by strong performances in retail and industrial sectors including Home Depot. Overall, the market mood was cautious, with investors awaiting the Federal Reserve's July meeting minutes and the highly anticipated speech by Fed Chair Jerome Powell scheduled for Friday. Futures trading on Tuesday night indicated minor fluctuations, with S&P 500 futures little changed and Nasdaq futures down 0.2 percent in early Wednesday Asian hours, suggesting a cautious stance ahead of the data releases.
Read more | Stock market today: U.S. indexes fluctuate as Europe shows resilience and Asia rises amid trade talks
European markets open lower after five-month high
Meanwhile, European stock markets started the day with a slight downward bias after reaching a five-month high on Tuesday, fueled by optimism over diplomatic progress towards peace between Russia and Ukraine. The pan-European STOXX 600 index gained 0.7 percent on Tuesday to 558 points, while the Eurozone's STOXX 50 closed up 0.9 percent at 5,486. However, early Wednesday indications suggested an off-peak opening, with the UK's FTSE expected to open 0.18 percent lower, Germany's DAX down 0.6 percent, France's CAC 40 down 0.56 percent, and Italy's FTSE MIB down 0.56 percent. The Tuesday rally was led by consumer discretionary and automobile sectors, with companies such as LVMH and Kering climbing 3 percent, and Stellantis and Mercedes-Benz up by 3.2 percent and 2.7 percent, respectively. Defensive stocks like defense contractors pulled back on peace optimism. European investors remain focused on geopolitical developments and key inflation data releasing this week.
Asian markets decline amid U.S. tech selloff
Asian markets opened lower on Wednesday, tracking the tech-led selloff in the U.S. and reflecting weak trade data out of Japan. Japan's Nikkei 225 declined 0.93 percent, and the Topix index fell 0.31 percent, with South Korea's Kospi plunging 1.52 percent and the Kosdaq down about 1 percent. Japan's July export data showed a year-over-year drop of 2.6 percent, the steepest in over four years, which exacerbated the negative sentiment. The MSCI Asia Pacific Index lost 0.3 percent, and Hong Kong stocks were also under pressure despite a strong first-half profit report from the Hong Kong Exchange operator, which saw a nearly 40 percent profit surge to a record HK$8.52 billion fueled by robust trading volumes and listings activity. Futures for Hong Kong's Hang Seng were down slightly to 24,977 from the previous close of 25,123. Investors in Asia remained cautious ahead of the Chinese central bank's loan prime rate decision and awaited additional trade data expected later in the week.
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