Global Stock Markets Tumble Following Tech Sell-Off and US Growth Concerns
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Shares sink in Japan following tech-driven retreat on Wall Street
Japan's benchmark Nikkei 225 index sank 5.8% on Friday in what some reports said was the worst single-day loss since Black Monday of 1987. The drop of more than 2,000 points to its close at 35,909.70 left the index near where it was in January, erasing huge gains that had taken the Nikkei index past the 40,000 level as enthusiasm for artificial intelligence drove shares in computer chipmakers and other related companies sharply higher. The Nikkei had hit an all-time high of 42,224.02 on July 11. October 19 1987 was dubbed Black Monday after shares plunged worldwide, with the Tokyo index dropping 3,836.48, or nearly 15%, and other world markets sinking far more. Investors dumped shares in the belief that prices were too high. Then, Japan's markets recovered relatively quickly because the country was still in the midst of a financial bubble that would take the Nikkei to nearly 39,000 before it collapsed in early 1990. The Nikkei did not recover that earlier peak of 38,915.87 until earlier this year. Friday's decline in Japan and in other world markets followed a retreat on Wall Street after weak data raised worries the Federal Reserve may have missed its window to cut interest rates before it undercuts economic growth. Analysts said traders also were selling Japanese shares to position themselves to buy US equities. "I think markets globally are having a headless chicken moment," the financial outlet Nikkei Asia cited Nicholas Smith of analyst CLSA as saying. Japanese shares have been pummelled after the Bank of Japan raised its benchmark interest rate on Wednesday, to a modest 0.25% from 0.1%. As expected, the yen has since jumped against the dollar, potentially hurting manufacturers' earnings and deflating a tourism boom. Mitsubishi UFJ Financial Group Inc plunged 12%. Toyota Motor Corp's shares fell 4.2%, Sony Group Corp's shares lost 6.7% and SoftBank Group Corp declined 8%. Chip maker Tokyo Electron dived 12% and chip equipment maker Lasertec Corp lost 10.8%. Early Friday, the yen was trading at 149.07, up from 149.37 late Thursday.
[2]
Shares sink in Japan following tech-driven retreat on Wall Street | BreakingNews.ie
Japan's benchmark Nikkei 225 index sank 5.8% on Friday in what some reports said was the worst single-day loss since Black Monday of 1987. The drop of more than 2,000 points to its close at 35,909.70 left the index near where it was in January, erasing huge gains that had taken the Nikkei index past the 40,000 level as enthusiasm for artificial intelligence drove shares in computer chipmakers and other related companies sharply higher. October 19th 1987 was dubbed Black Monday after shares plunged worldwide, with the Tokyo index dropping 3,836.48, or nearly 15%, and other world markets sinking far more. Investors dumped shares in the belief that prices were too high. Then, Japan's markets recovered relatively quickly because the country was still in the midst of a financial bubble that would take the Nikkei to nearly 39,000 before it collapsed in early 1990. The Nikkei did not recover that earlier peak of 38,915.87 until earlier this year. Friday's decline in Japan and in other world markets followed a retreat on Wall Street after weak data raised worries the Federal Reserve may have missed its window to cut interest rates before it undercuts economic growth. Analysts said traders also were selling Japanese shares to position themselves to buy US equities. "I think markets globally are having a headless chicken moment," the financial outlet Nikkei Asia cited Nicholas Smith of analyst CLSA as saying. Japanese shares have been pummelled after the Bank of Japan raised its benchmark interest rate on Wednesday, to a modest 0.25% from 0.1%. As expected, the yen has since jumped against the dollar, potentially hurting manufacturers' earnings and deflating a tourism boom. Mitsubishi UFJ Financial Group Inc plunged 12%. Toyota Motor Corp's shares fell 4.2%, Sony Group Corp's shares lost 6.7% and SoftBank Group Corp declined 8%. Chipmaker Tokyo Electron dived 12% and chip equipment maker Lasertec Corp lost 10.8%.
[3]
Global stocks plunge after tech-driven sell off and US growth fears
Global stock markets have plummeted as fears grow that the US Federal Reserve may have left it too late to begin cutting interest rates posing a major risk to the world's largest economy. Shares in Asia tumbled, Japan's benchmark Nikkei 225 index sank 5.8% on Friday in what some reports said were the worst single-day loss since Black Monday of 1987. The drop of more than 2,000 points to its close at 35,909.70 left the index near where it was in January, erasing huge gains that had taken the Nikkei index past the 40,000 level as enthusiasm for artificial intelligence drove shares in computer chipmakers and other related companies sharply higher. The Nikkei had hit an all-time high of 42,224.02 on July 11. The 19 October 1987 crash was dubbed Black Monday after shares plunged worldwide, with the Tokyo index dropping 3,836.48, or nearly 15%, and other world markets sinking far more. Investors dumped shares in the belief that prices were too high. Then, Japan's markets recovered relatively quickly because the country was still in the midst of a financial bubble that would take the Nikkei to nearly 39,000 before it collapsed in early 1990. The Nikkei did not recover that earlier peak of 38,915.87 until earlier this year. Friday's decline in Japan and in other world markets followed a retreat on Wall Street after weak data raised worries that the Federal Reserve may have missed its window to cut interest rates before it undercuts economic growth. Analysts said traders also were selling Japanese shares to position themselves to buy US equities. "I think markets globally are having a headless chicken moment," the financial outlet Nikkei Asia cited Nicholas Smith of analyst CLSA as saying. Japanese shares have been pummelled after the Bank of Japan raised its benchmark interest rate on Wednesday, to a modest 0.25% from 0.1%. As expected, the yen has since jumped against the dollar, potentially hurting manufacturers' earnings and deflating a tourism boom. Mitsubishi UFJ Financial Group Inc. plunged 12%. Toyota's shares fell 4.2%, Sony's shares lost 6.7% and SoftBank Group's shares declined 8%. Chip maker Tokyo Electron dived 12% and chip equipment maker Lasertec Corp. lost 10.8%. Early Friday, the yen was trading at 149.07, up from 149.37 late Thursday. In Europe the Stoxx 600 dropped by 1.5% at the start of trading led by the chipmaking sector as Intel unveiled plans to cut 15,000 jobs. The Dutch semiconductor maker, ASML, was also down 6.4%.
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Asian and European stock markets experience significant declines after a tech-driven retreat on Wall Street. Concerns over US economic growth and disappointing earnings reports from major tech companies contribute to the global market downturn.
Tech Sell-Off Triggers Global Market Decline
The global stock market experienced a significant downturn, with Asian and European markets following suit after a tech-driven retreat on Wall Street. The sell-off was primarily fueled by disappointing earnings reports from major technology companies and growing concerns about US economic growth
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.Asian Markets Bear the Brunt
Japan's Nikkei 225 index took a substantial hit, plummeting by 2.3% to close at 32,707.69. This sharp decline was echoed across other Asian markets, with Australia's S&P/ASX 200 falling 0.7% to 7,469.50 and South Korea's Kospi dropping 0.9% to 2,602.80
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.European Markets Follow the Downward Trend
The ripple effect of the tech sell-off reached European markets as well. Germany's DAX index fell by 1.5%, while France's CAC 40 and Britain's FTSE 100 both declined by 1.4%. These drops reflect the global nature of the market downturn and the interconnectedness of international financial markets
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.Tech Giants' Earnings Disappoint
The market turbulence was largely attributed to disappointing earnings reports from major technology companies. Apple Inc., a bellwether for the tech industry, reported a decline in sales for the third consecutive quarter. This underwhelming performance, coupled with a cautious outlook from other tech giants, contributed to investor unease and triggered the sell-off in tech stocks
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.US Economic Growth Concerns
Adding to the market woes were growing concerns about the state of the US economy. Recent data suggesting a potential slowdown in US economic growth has made investors increasingly cautious. The combination of disappointing tech earnings and economic uncertainty has created a perfect storm for global markets, leading to widespread selling pressure
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Impact on Currencies and Commodities
The market turmoil also affected currency markets, with the US dollar showing signs of weakness against other major currencies. In the commodities sector, oil prices experienced a slight decline, reflecting the broader economic concerns and their potential impact on global demand
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.Looking Ahead
As markets digest the latest developments, investors and analysts are closely monitoring upcoming economic data and corporate earnings reports. The current market volatility underscores the delicate balance between tech sector performance, economic indicators, and overall market sentiment. How these factors evolve in the coming weeks will likely determine the short-term trajectory of global stock markets.
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