Global stock markets fell on Tuesday, with Tokyo and Seoul leading the declines as investors grew increasingly uneasy about inflated tech valuations and the prospect of a third consecutive Federal Reserve interest‑rate cut. The anxiety stems from this year’s record rally, which has been driven by fear of missing out on the artificial‑intelligence (AI) boom and bets on falling U.S. borrowing costs.
Attention now turns to the upcoming earnings report from Nvidia, a leading AI‑chip maker, which should shed light on the sector’s outlook. Retail giants Home Depot, Target and Walmart will also release results, offering a glimpse of consumer sentiment. Investors remain sensitive to any negative news from the AI universe, and the recent sale of Nvidia stakes by tech billionaire Peter Thiel’s hedge fund has added to the uncertainty.
The U.S. September jobs report, due Thursday, will provide a fresh snapshot of the world’s largest economy and influence expectations for another rate cut. The odds of a December reduction are currently about 50‑50, with Fed officials expressing concerns about inflation. Fed Chair Jerome Powell has said another cut is not a “foregone conclusion,” a view echoed by his colleagues, while Governor Christopher Waller has stressed the importance of the labor market, suggesting a cut may still be needed. These conflicting signals have left investors cautious.
In Japan, the yield on the 20‑year government bond rose to its highest level since 1999 amid speculation about a new economic stimulus package. Asian markets struggled, with Tokyo and Seoul posting significant losses, the yen slipping to its weakest level since January and prompting speculation about possible official intervention. Selling was broad‑based, affecting Hong Kong, Sydney and other major markets.
Bitcoin also continued its decline, falling below $90,000 for the first time in seven months. The upcoming Nvidia earnings and U.S. jobs data will be closely watched, as they are likely to shape the next steps for investors and policymakers. As the global economy navigates this period of uncertainty, market volatility is expected to persist, with investors monitoring developments in the AI sector and the broader economy.
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