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Asian Shares retreated in cautious trading on Wednesday ahead of the earnings report. NVIDIA This is seen as a sign of the recent craze for artificial intelligence technology.
Japan’s benchmark Nikkei 225 was almost unchanged at 48,724.17.
from hong kong hang Seng fell 0.5% to 25,812.54, while shanghai composite Slipped just over 1 point to 3,939.29.
Australia’s S&P/ASX 200 fell 0.1% to 8,458.40, while South Korea’s Kospi fell 0.5% to 3,934.58.
Nvidia was scheduled to report earnings for its final quarter later today. The US jobs report is due on Thursday after a gap in updates due to the US government shutdown, another factor weighing on market sentiment.
On Tuesday, stock prices fell around the world, with Nvidia leading Wall Street with a 2.8% drop. This brings the chipmaker’s losses to more than 10% so far this month, which is a decline so big that it can be considered an improvement.
The S&P 500 fell 0.8% to 6,617.32, falling further behind its all-time high set late last month. The Dow Jones Industrial Average fell 1.1% to 46,091.74, while the Nasdaq Composite dropped 1.2% to 22,432.85.
Nvidia’s performance matters disproportionately to savers’ 401(k) accounts because its sheer size means it is the most influential stock on Wall Street. It single-handedly led the S&P 500 for days, with its total valuation briefly topping $5 trillion after strong demand for its artificial-intelligence chips.
The U.S. stock market’s recent struggles are a sharp turnaround from its nearly continuous rally since April, when Wall Street last sold off after President Donald Trump shocked the world with harsh tariffs.
That rally was so strong that critics say it would have pushed prices too high, too fast, and risked a massive market decline. They point specifically to stocks caught up in the AI craze, which have been rising at a spectacular pace for years.
Traders also expected this earlier federal Reserve But now they are not certain whether it will cut the key interest rate at its next meeting in December. The Fed has already cut rates twice this year in hopes of supporting the recession-hit job market. But low interest rates could make inflation worse, and inflation consistently remains above the Fed’s 2% target.
Many large investors still expect stock prices to rise further, according to Bank of America Global Research’s latest monthly survey of global fund managers. But when asked what the No. 1 risk to the market is, one that has a low probability of happening but has the potential to cause huge damage, 45% pointed to an AI bubble. It avoided potential trouble in the bond market, inflation and trade wars.
Other high-flying areas of the market have also been struggling recently. On Tuesday, the price of Bitcoin briefly fell below $90,000, down from about $125,000 last month. Later it recovered some of its losses. Early Wednesday, it was down 1.3% at $91,700.
In other deals early Wednesday, the US dollar fell to 155.46 JPY from 155.51 yen. The euro was unchanged at $1.1581.
In energy trading, benchmark U.S. crude fell 19 cents to $60.48 a barrel. Brent crude, the international benchmark, fell 20 cents to $64.69 a barrel.
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AP Business Writer Stan Cho contributed.