New York (AFP) – Global stock markets pulled back Monday as traders awaited key earnings reports, notably from chip giant Nvidia, amid concerns that the US Federal Reserve could hold off on further rate cuts this year. On Wall Street, the Dow retreated 1.2 percent while the tech-heavy Nasdaq lost 0.8 percent. The broader-based S&P 500 slid 0.9 percent.
Europe lacked inspiration too, with the DAX closing off 1.2 percent while London and Paris lost marginal ground. Major Asian indices had earlier finished lower as well amid simmering tensions between China and Japan, which hit tourism and retail firms on Tokyo’s exchange. Besides Nvidia, which dropped 1.9 percent, US retailers Home Depot, Target, and Walmart are also set to release their earnings reports. Those will be monitored for signs of how consumers are faring as President Donald Trump’s tariffs bite.
Traders are also awaiting US government data on how the labor market fared in September. The numbers are due for publication Thursday, after the end of the longest government shutdown in US history. “It’ll be the first glimpse of some macro news” that could provide hints on the Fed’s preferred path for interest rates moving forward, said Peter Cardillo from Spartan Capital Securities. Among companies, he added: “It’s all up to Nvidia, whether or not it can turn the souring negative sentiment on the AI sector.”
Dave Grecsek of wealth management firm Aspiriant added that if Nvidia could meet high expectations, “that could sort of stabilize the market a little bit.” The European Union on Monday cut its eurozone growth forecast for 2026 as risks from international trade and geopolitical tensions weighed on Europe’s economy. Investors have in recent weeks reconsidered prospects for US rate cuts and the AI-fueled tech rally that had lifted several markets to record highs.
Traders are keenly awaiting the release of several reports — including on jobs and inflation — that had been held up by the record US government shutdown that ended last week. With data releases delayed, “chances are growing that the Fed will avoid changing monetary policy when the economic outlook remains murky,” said Kathleen Brooks, research director at trading group XTB. Fed boss Jerome Powell signaled last month that a December cut to borrowing costs was not assured, adding to uncertainty.
All eyes are on this week’s earnings update from Nvidia, the world’s most valuable company, which late last month hit a market capitalization of $5.0 trillion before slipping back. For now, Bitcoin suffered from the uncertain climate on trading floors. The cryptocurrency had climbed to a record high of $126,251 on October 6, buoyed by Trump’s pledges to ease regulation on the crypto sector, but has fallen from that level to around $91,634.45.
– Key figures at around 2105 GMT –
New York – Dow: DOWN 1.2 percent at 46,590.24 points (close)
New York – S&P 500: DOWN 0.9 percent at 6,672.41 (close)
New York – Nasdaq Composite: DOWN 0.8 percent at 22,708.08 (close)
London – FTSE 100: DOWN 0.2 percent at 9,675.43 points (close)
Paris – CAC 40: DOWN 0.6 percent at 8,119.02 (close)
Frankfurt – DAX: DOWN 1.2 percent at 23,590.52 (close)
Tokyo – Nikkei 225: DOWN 0.1 percent at 50,323.91 (close)
Hong Kong – Hang Seng Index: DOWN 0.7 percent at 26,384.28 (close)
Shanghai – Composite: DOWN 0.5 percent at 3,972.03 (close)
Dollar/yen: UP at 155.23 yen from 154.55 yen on Friday
Euro/dollar: DOWN at $1.1589 from $1.1621
Pound/dollar: DOWN at $1.3156 from $1.3171
Euro/pound: DOWN at 88.09 pence from 88.22 pence
West Texas Intermediate: DOWN 0.3 percent at $59.91 per barrel
Brent North Sea Crude: DOWN 0.3 percent at $64.20 per barrel
© 2024 AFP
