Jimo Zhong, Associated Press
14 minutes ago
FILE – A person looks at an electronic securities board displaying Japanese stock prices at a securities company in Tokyo on April 30, 2024. Asian stocks fell on Wednesday, May 1, 2024, as most markets in the region were closed for public holidays. Meanwhile, US stocks ended their worst month since September. (AP Photo/Hoshiko Eugene, File)
HONG KONG (AP) – Asian stocks fell Wednesday as most of the region’s markets were closed for the holiday. Meanwhile, US stocks ended their worst month since September.
Oil prices fell and US futures were mixed.
Tokyo’s Nikkei 225 Index fell to 0.4 as Japan’s factory activity experienced a modest contraction in April, as au Jibun Bank’s Manufacturing Purchasing Managers Index rose to 49.6 in April from 48.2 in March. % to 38,271.77. A PMI reading of less than 50 represents a contraction, while a reading of 50 indicates no change.
The yen continues to struggle. On Wednesday, the U.S. dollar rose to 157.88 yen from 157.74 yen.
Australia’s S&P/ASX 200 index fell 1.1% to 7,581.90. Other markets in the area were closed for the Labor Day holiday.
On Tuesday, the S&P 500 fell 1.6%, locking up its first decline in the past six months, ending at 5,035.69. After setting a record at the end of March, the momentum suddenly reversed in April, at one point dropping as much as 5.5%.
The Dow Jones Industrial Average fell 1.5% to $37,815.92, and the Nasdaq Composite Index fell 2% to $15,657.82.
Stocks began falling as soon as trading began on reports that U.S. workers received better-than-expected wage and benefit increases in the first three months of the year. While this is good news for workers and the latest sign of a robust job market, it adds to concerns that upward pressure on inflation remains.
The move follows a series of reports this year showing that inflation remains high. As a result, traders have largely given up hope that the U.S. Federal Reserve will cut interest rates multiple times this year. And that’s sending Treasury yields soaring in the bond market, putting more pressure on stock prices.
Stock market losses on Tuesday accelerated late in the day as traders made final moves ahead of the April earnings report and the Federal Reserve’s interest rate announcement scheduled for Wednesday afternoon. did.
No one expects the Fed to change its key interest rate at this meeting. But traders are concerned about what Fed Chairman Jerome Powell will say about the rest of the year.
GE Healthcare Technologies fell 14.3% after reporting weaker-than-analyst-expected results and sales for the latest quarter. F5 fell 9.2% despite reporting better-than-expected profits.
McDonald’s fell 0.2% after its latest quarter’s profit was slightly below analysts’ expectations. Sales at overseas franchise stores were sluggish, in part due to boycotts in Muslim-majority markets over the company’s perceived support for Israel.
3M helped limit market losses, rising 4.7% after announcing better-than-expected results and profits. Eli Lilly’s shares rose 6%, with higher-than-expected profits due to strong sales of its diabetes and obesity drugs Munjaro and Zepbound. The company also raised its full-year sales and profit forecasts.
Shares of cannabis companies also soared after the Associated Press reported that the U.S. Drug Enforcement Administration is moving to reclassify marijuana as a less dangerous drug in a historic shift. Marijuana producer Tilray Brands rose 39.5%.
Earnings season has generally been better than expected so far. It’s not just the technology companies that dominate Wall Street, but companies from a variety of industries that are doing well.
In the bond market, the 10-year Treasury yield rose to 4.69% from 4.61% on Wednesday.
Benchmark U.S. crude oil fell 75 cents to $81.18 a barrel. Brent crude, the international standard crude, fell 65 cents to $85.68 per barrel.
In currency trading, the euro fell from $1.0663 to $1.0655.
