Stock market today: Asian stocks are mixed after Wall Street slips to its worst loss in 4 months

Stock market today: Asian stocks are mixed after Wall Street slips to its worst loss in 4 months

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Tokyo’s Nikkei 225 sank 0.9% to 35,975.44 and Seoul’s Kospi rose 1.7% to 2,538.76.

In Australia, the S&P/ASX 200 fell 1.2% to 7,588.20.

The Bangkok SET rose 0.5%, while India’s Sensex rose 0.1%.

On Wednesday, Big Tech stocks burned by the downside of high expectations caused a sharp drop.

The S&P 500 fell 1.6% on its worst day since September, falling to 4,845.65.

The decline in Big Tech stocks dragged the Nasdaq to a market-leading loss of 2.2%. It closed at 15,164.01.

The Dow Jones Industrial Average, which has less emphasis on technology, fell a more modest 0.8% to 38,150.30.

Alphabet was one of the market’s heaviest weights, losing 7.5% despite reporting stronger earnings and revenue for the latest quarter than analysts expected. Beneath the surface, analysts pointed out some worrying trends as to how much Google’s parent company is earning from advertising.

microsoft fell 2.7% despite generating higher-than-expected profits and revenue. One analyst, Dan Ives of Wedbush Securities, even called its quarterly report “a masterpiece that should hang in the Louvre.”

tesla, another member of the group of technology stocks dubbed the “Magnificent Seven,” fell 2.2%. A Delaware judge ruled a day earlier that its CEO, Elon Musk, is not entitled to the historic compensation package he was previously awarded.

Three other Big Tech stocks will report results on Thursday: Amazon, Apple and Meta Platforms, the parent company of Facebook and Instagram.

On Wednesday, the Federal Reserve left its key interest rate steady and made clear that it “does not expect it to be appropriate” to cut rates “until it has gained greater confidence that inflation is moving sustainably toward” its 2% target. .

“We are not declaring victory at all,” said Federal Reserve Chairman Jerome Powell.

The Federal Reserve is unlikely to reach that level of comfort at its next meeting in March.

“It’s probably not the most likely case,” he said, sending shares tumbling in late trading.

Powell also said that Fed officials just need to see more months of data confirming that inflation is coming down sustainably. “We’re confident,” he said. “It has been increasing, but we want to achieve greater confidence.”

Treasury yields in the bond market rose and fell following the Federal Reserve’s announcement. They had been lower earlier after a pair of weaker-than-expected reports on the economy.

One report said that growth in wages and benefits for American workers was slower in the last three months of 2023 than economists expected. While all workers would like bigger raises, the colder-than-expected data could further calm what was one of the Fed’s big fears: that too large wage increases would trigger a vicious cycle that would end up keeping inflation high. .

A separate report from the ADP Research Institute also suggested that hiring by non-government employers was softer in January than economists expected. The Federal Reserve and Wall Street expect the labor market to cool just enough, enough to control inflation, but not enough to cause a recession. A more complete employment report from the US government will arrive on Friday.

The yield on the 10-year Treasury note was at 3.95% Thursday morning, down from 3.92% late Wednesday. It was at 4.04% Tuesday night. In October, it was above 5% and at its highest level since 2007.

In other trading Thursday, U.S. benchmark crude oil gained 16 cents to $76.01 a barrel in electronic trading on the New York Mercantile Exchange.

Brent crude, the international standard, added 14 cents to $80.69 a barrel.

The US dollar fell to 146.88 Japanese yen from 146.92 yen. The euro fell to $1.0803 from $1.0817.

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AP Business Writer Stan Choe contributed.

FILE - A person looks at an electronic stock board showing Japan's Nikkei 225 index at a securities firm on Friday, Jan. 26, 2024, in Tokyo.  Asian stocks were mixed on Thursday after Wall Street fell to its worst loss since September as the Federal Reserve signaled that interest rate cuts are not imminent.  (AP Photo/Eugene Hoshiko, File)

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FILE - Currency traders watch monitors in the foreign exchange trading room at KEB Hana Bank headquarters in Seoul, South Korea, Monday, Jan. 29, 2024. Asian stocks posted mixed results on Thursday after Wall Street fell to its worst loss since September when the Federal Reserve indicated that interest rate cuts are not imminent.  (AP Photo/Ahn Young-joon, File)

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Credit: AP

Specialist Anthony Matesic works at his booth on the New York Stock Exchange, Wednesday, Jan. 31, 2024. Technology stocks plunge Wednesday as several of Wall Street's most influential stocks feel the downside of the ultra-high expectations.  (AP Photo/Richard Drew)

Credit: AP

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