In cautious trading on Tuesday, most Asian shares declined as investors awaited central bank meetings happening worldwide. The Federal Reserve, Bank of England, and Bank of Japan are among the institutions holding monetary policy meetings this week. Market uncertainty was reflected in Japan’s Nikkei 225, which dropped by 0.5%, and other key indices like Australia’s S&P/ASX 200, South Korea’s Kospi, Hong Kong’s Hang Seng, and Shanghai Composite also experienced declines.
Amidst the central bank meetings, U.S. stock indexes showed a mixed finish on Monday, with the S&P 500 gaining slightly, the Dow Jones slipping, and the Nasdaq adding marginally. The market was led by ON Semiconductor, which reported stronger-than-expected profits, while oil-and-gas companies suffered as crude oil prices dipped. Looking ahead, major companies like Microsoft, Meta Platforms, Apple, and Amazon are set to report earnings this week, amid concerns about the performance of Big Tech stocks and their valuation.
Despite a recent slowdown in the momentum of Big Tech stocks, the U.S. stock market has found support from other sectors that were previously impacted by high interest rates. Small stocks rallied on expectations of easing inflation and potential interest rate cuts by the Federal Reserve. While uncertainties remain in the market, particularly around the performance of Big Tech stocks and upcoming central bank decisions, investors are closely monitoring these key factors to make informed investment decisions.
