US stocks closed sharply lower on Friday as a Broadcom-led rout among the largest tech weights sparked a rotation into cyclicals and defensive names. The S&P 500 fell 1% and the Dow gave back 0.4% after touching record highs, while the Nasdaq dropped 1.8%, with Broadcom plunging 11.4% after warning of margin pressure. Other heavyweight, AI-exposed and semiconductor names also posted steep losses, including Nvidia (-3.3%), Oracle (-4.5%), Palantir (-2.1%), AMD (-4.8%), and Micron (-6.7%) setting the pace for a sharp selloff in the sector. The pullback reflects margin concerns and growing...
The Hong Kong stock index weakened in Monday morning trading, dropping around 165 points or 0.6% to 25,915. This correction halted the previous two sessions' rally. Most sectors fell, with financial and consumer stocks leading the decline. Investors have become more cautious after consecutive gains, opting to hold off while awaiting new data and sentiment. The market is now focused on the release of China's November trade data, scheduled for release today. Previously, October data recorded an unexpected decline in exports and weaker-than-expected imports, raising fresh concerns about the...
The Japanese stock market opened lower at the start of trading after disappointing economic growth data showed results. Japan's gross domestic product (GDP) fell 0.6% in the July-September quarter compared to the previous three months—worse than the expected 0.4% decline. This data immediately weighed on market sentiment and caused several leading stocks to decline. The electronics, technology, and banking sectors were the hardest hit. Lasertec fell 1.8%, SoftBank Group fell 1.6%, and Resona Holdings fell 1.8%. Meanwhile, the US dollar strengthened against the yen to 155.21, up from 154.59...
Asian stock markets started the week cautiously. The MSCI Asia Index fell slightly by 0.1%, in line with weakening US index futures. Australia also weakened, while Japan's Nikkei 225 fell 0.4% amid reports that the Japanese economy shrank again in the third quarter. This situation was exacerbated by the escalating Japan-China relationship, particularly following the incident involving a Chinese fighter jet that aimed its fire control radar at a Japanese jet. Investors' caution is also heightened as global markets hover near their highs, fueled by the AI-driven stock rally this year. This...
US stocks closed higher on Friday (December 5), with the S&P 500 up 0.2%, the Nasdaq up 0.4%, and the Dow Jones Industrial Average up 0.2% as weak PCE data and positive sentiment in Michigan strengthened the likelihood of a 25bps Fed rate cut next week, with traders pricing in an 87% chance of a rate cut. Core PCE rose 0.2% in September, with the annual rate dropping to 2.8%, while Michigan showed improved confidence and lower near-term inflation expectations. Large-cap stocks were the main drivers of the gains, with Alphabet (+1.2%), MetaTrader (+1.8%), and Broadcom (+2.4%) leading the...
European stocks edged higher, posting a second straight week of gains, as markets continued to assess the outlook for interest rates next year, the returns from a surge in AI capital spending, and the possibility of a ceasefire between Russia and Ukraine. The STOXX 50 edged up 0.1% to 5,726, up 1% for the week, while the STOXX 600 closed flat at 579, up 0.4% from last Friday. The latest US economic data maintained the prospect of a Fed rate cut next week, while an upward revision to the Eurozone labor market was consistent with the ECB's signal that interest rates would remain unchanged for...