Asian stocks rose on Tuesday despite a decline in Wall Street’s NVIDIA. The Nikkei 225 in Japan increased by 0.5%, while Hong Kong’s Hang Seng rose by 0.5% and the Shanghai Composite Index fell by 0.3%. Australia’s S&P/ASX 200 gained 0.9%, South Korea’s Kospi rose 0.5%, and Taiwan’s Taiex lost 0.3%. The S&P 500 fell by 0.3%, with the Nasdaq Composite dropping by 1.1% and the Dow Jones Industrial Average rising by 0.7%. Oil and gas companies saw strong gains, with shares of Exxon Mobil and SLB rising. Financial companies like JPMorgan Chase and Wells Fargo also performed well.
Nvidia’s 6.7% drop was a significant factor in the market, marking its third consecutive decline after a period of significant growth. The stock market has seen record highs due to the surge in demand for Nvidia chips in artificial intelligence applications, raising concerns about a possible market bubble.
Treasury yields fell slightly, with the 10-year Treasury yield dropping to 4.23%. This decline has alleviated some pressure on the stock market, with hopes that inflation will slow enough to prompt a rate cut by the Federal Reserve.
In other trading, benchmark U.S. crude oil slightly decreased to $81.62 a barrel, while Brent crude fell to $85.13 a barrel. The euro also saw a slight increase to $1.0736.
Overall, the market is showing signs of rotation among stocks, potentially indicating a healthy market environment. Market watchers are keen on maintaining the market’s record levels while ensuring that more stocks share in the profits, rather than relying solely on a few key players like Nvidia.
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