Asian stocks fell in early trading Friday, along with US stock futures, after a reversal on Wall Street pushed the Nasdaq 100 into a correction.
Contracts on the S&P 500 (SPX) and Nasdaq 100 fell, dragging down the performance of the latter. The tech gauge erased a nearly 2% rise Thursday before ending in the red, while the S&P 500 also gave up gains and fell 5% from its January high.
Japan’s Topix is down, falling from a peak in September to more than 10%. Australia and South Korea were also in negative territory.
Investors are grappling with the possibility of policy tightening by the US Federal Reserve to quell high inflation. Cautious developments from US companies weighed on investor sentiment. Netflix Inc. (NFLX) It fell in after-hours trading due to disappointing prospects for underwriters. Peloton Interactive Inc. has retreated. , once a favorite in the stay-at-home business, due to a report of temporary production shutdowns.
Meanwhile, a report that Washington has allowed some Baltic states to send US-made weapons to Ukraine has raised concerns about a confrontation with Russia. Treasury yields fell and the dollar’s scale fluctuated. Oil falls amid surprise gains in US crude stocks
Investors are on edge as the pandemic-era stimulus wanes that has boosted a number of assets. Markets are facing a double whammy from an interest rate hike by the Federal Reserve and a potential cut to its $8.8 trillion balance sheet to combat higher price pressures.
“A lot of people talk about inflation and that kind of thing, but their portfolios don’t really reflect that,” Richard Bernstein, chief investment officer at Richard Bernstein Advisors LLC, said on Bloomberg TV. “That’s the frequency, the uncertainty you see now.”
In China, regulatory pressure against tech companies is back in the spotlight. The nation promised to curb its influence over governments. However, the gauge of Chinese stocks traded in the US rose, amid bets that the easing policy will help the nation’s stocks.
In the latest US data, initial jobless claims rose last week to a three-month high, suggesting that the Omicron formula may have a greater impact on the labor market.
Stock Markets:
S&P 500 futures fell 0.3% at 9:13 am in Tokyo. The S&P 500 is down 1.1%.
Nasdaq 100 futures fell 0.7%. The Nasdaq 100 is down 1.3%.
Japan’s Topix index fell 1.7%.
The Australian S&P/ASX 200 lost 1.1%
– The Kospi in South Korea fell 0.7%.
You may be interested in:
Netflix shares drop after disappointing expectations for new subscribers
Technical stocks outperform US markets; Argentine Merval tops in Latin America
MercadoLibre Announces Investments in Mercado Bitcoin and Paxos
“Beeraholic. Friend of animals everywhere. Evil web scholar. Zombie maven.”