On Wall Street, futures were down around 0.2% after the Nasdaq lost almost 4% in the previous session, weakened by lackluster results from Alphabet and Tesla, which undermined confidence in the already high valuations of the big tech companies.
Global stock markets are facing a significant drop in their values on Thursday, with multi-million dollar losses driven by the collapse of the technology stocks on Wall Street. This decline led investors to seek refuge in traditional assets such as bonds, the yen and the Swiss franc.
Wall Street saw its futures in the red, while the main European stock markets fell by more than 1%. This reaction was due to the worst performance of the Nasdaq since 2022, caused by disappointing results from Alphabet and Tesla. Chinese stocks, along with iron ore and oil prices, also closed lower, exacerbated by the People’s Bank of China’s unexpected cut in long-term interest rates. This cut intensified concerns about the Chinese economy.
The sell-off in global markets, which had already exceeded $3 trillion in the last six sessions, was pushing investors to bet on a possible rate cut. Futures indicate a 100% chance that the Federal Reserve will change its monetary policy in September. The increasing volatility in the markets was putting strong pressure on the “carry trade” operations, resulting in a further 0.7% drop in the dollar against the yen, standing at 152.25 units.
MSCI’s global stock index fell 0.5%, and Japan’s Nikkei plunged 3.3%, worsened by an 11% drop in Nissan Motor shares after a 99% drop in quarterly profit. Markets in Taiwan were closed for a second straight day due to a typhoon, while Chinese stocks fell 0.6% to five-month lows. Hong Kong’s Hang Seng Index fell 1.7%, finding no support from Beijing’s recent easing measures.
Coins in the middle of the storm
The yen gained more than 1 percent to its highest level in two and a half months ahead of a Bank of Japan meeting next week to discuss a possible rate hike. The Swiss franc also gained 0.5 percent to 0.88 per dollar.
markets wall street stock exchanges usa
Reuters
U.S. two-year Treasury yields were down 3 basis points at 4.3894%, after a 4 basis point drop on Wednesday, while 10-year notes were down 2 basis points at 4.2622%. In the commodities market, iron ore prices fell by almost 1% due to concerns about China, copper fell by 1.2%, Oil prices fell 0.5%, holding near six-week lows, and gold fell 1% to $2,373.62 an ounce.
Source: Ambito
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