Asian shares were mostly lower on Friday after a retreat on Wall Street, led by a drop in Nvidia stock. Japan’s Nikkei 225 edged up slightly, while Australia’s S&P/ASX 200 rose. South Korea’s Kospi and Hong Kong’s Hang Seng both dropped, along with the Shanghai Composite. The S&P 500 and Nasdaq composite both fell from their record highs, while the Dow Jones Industrial Average posted a gain.
Nvidia, a chip company that has benefited from the AI technology frenzy on Wall Street, saw its stock drop 3.5% after an early gain. The company, which had recently become the most valuable company in the market, is a key player in the move towards AI technology. Despite the drop, Nvidia’s stock has seen significant gains this year, rising 164% after more than tripling in the previous year.
Accenture, a consulting and professional services company, saw its stock rise 7.3% despite reporting weaker profit and revenue than expected. The company highlighted its success in securing new bookings for generative AI, totaling $2 billion in the last three quarters. The impressive gains of companies like Nvidia and Accenture have raised concerns about a potential market bubble but have also helped support the overall stock market.
Mixed reports on the U.S. economy have affected Treasury yields, with some positive signs in the mid-Atlantic manufacturing sector but a slowdown in new home construction. A potential slowdown in the economy could ease inflationary pressures and lead to a cut in interest rates by the Federal Reserve. This could help stimulate investment and boost prices in the market.
Federal Reserve officials have hinted at possible interest rate cuts later this year, with traders on Wall Street expecting multiple cuts. In energy trading, benchmark U.S. crude and Brent crude both saw slight declines. In currency trading, the U.S. dollar remained relatively stable against the Japanese yen, while the euro saw a slight increase. Overall, the market remains cautious amid uncertainties about the economy and the Federal Reserve’s future actions.
