HONG KONG (AP) — Global stock markets saw a mix of trends on Tuesday following a downturn in the tech sector, particularly with Wall Street leader Nvidia, which contributed to a mixed performance for U.S. indexes on Monday.
In early trading, the Dow Jones Industrial Average futures were stable, while S&P 500 futures slipped slightly. European markets opened lower, with France’s CAC 40 and Germany’s DAX both showing losses.
However, Japan’s Nikkei 225 surged 1%, driven by positive data from the Bank of Japan, showing a slight slowdown in the services producer price index growth compared to previous months.
In Hong Kong, the Hang Seng index managed to recover from earlier losses to close higher, while the Shanghai Composite index dipped slightly. Meanwhile, Australia’s S&P/ASX 200 and South Korea’s Kospi posted gains.
The recent decline in Nvidia’s stock, down nearly 13% in three days, has raised concerns about a possible stock market bubble, despite its significance in driving the market’s record highs. The stock market’s focus remains on the impact of high interest rates and the ongoing AI boom.
In bond markets, Treasury yields eased slightly, prompting optimism that inflation may be slowing enough to prompt the Federal Reserve to consider cutting interest rates later this year.
Crude oil prices saw a modest decline in early trading, with U.S. benchmark crude oil and Brent crude both registering slight losses.
Overall, global markets continue to navigate uncertainties stemming from the tech sector’s performance and broader economic conditions.
Vocabulary List:
- Downturn /?da?n?t?rn/ (noun): A decline in economic, business, or market activity.
- Surged /s?rd?d/ (verb): Increased suddenly and powerfully.
- Significance /s???n?f?k?ns/ (noun): The quality of being worthy of attention; importance.
- Optimism /??pt??m?z?m/ (noun): Hopefulness and confidence about the future or the success of something.
- Benchmark /?b?n??m?rk/ (noun): A standard or point of reference against which things may be compared or assessed.
Vocabulary List:
- Downturn /ˈdaʊnˌtɜrn/ (noun): A decline in economic business or market activity.
- Surged /sɜrdʒd/ (verb): Increased suddenly and powerfully.
- Significance /sɪɡˈnɪfɪkəns/ (noun): The quality of being worthy of attention; importance.
- Optimism /ˈɑptɪˌmɪzəm/ (noun): Hopefulness and confidence about the future or the success of something.
- Benchmark /ˈbɛnʧmɑrk/ (noun): A standard or point of reference against which things may be compared or assessed.
- Composite /kəmˈpɒzɪt/ (noun): Something made up of various parts or elements.
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