Global Markets Today: Asian markets declined on Wednesday, tracking Wall Street’s losses after U.S. Federal Reserve Chair Jerome Powell remarked that “equity prices are fairly highly valued.” He further indicated that the outlook for rate cuts remains uncertain and that the Fed is navigating a “challenging situation.”
Australia’s S&P/ASX 200 dropped 0.61 per cent. Japan’s Nikkei 225 slipped 0.33 per cent, while the Topix shed 0.35 per cent.
In South Korea, the Kospi eased 0.11 per cent and the Kosdaq fell 0.39 per cent. Meanwhile, Hong Kong’s Hang Seng Index was poised to open higher, with futures last trading at 26,188 compared to the prior close of 26,159.12.
U.S. markets closed lower on Tuesday, snapping three-day streak of record highs, after Federal Reserve Chair Jerome Powell noted that upcoming rate decisions would need to balance inflation risks with a slowing labor market.
Powell also remarked that equity valuations remain relatively overvalued but gave little indication of when the Fed might implement its next rate cut. Last week, the central bank reduced rates for the first time this year and signaled the possibility of more cuts ahead.
The Dow Jones Industrial Average slipped 88.76 points, or 0.19 per cent, to 46,292.78. The S&P 500 dropped 36.83 points, or 0.55 per cent, to 6,656.92, while the Nasdaq Composite declined 215.50 points, or 0.95 per cent, to 22,573.47.
The Nasdaq was the biggest drag, as Nvidia shares slipped 2.8 per cent after gaining in the prior session when the chipmaker announced plans to invest up to $100 billion in OpenAI.
Amazon.com, Microsoft, and Apple shares also closed lower.
(With inputs from agencies)
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