Global stock markets saw mixed results Thursday. Several Asian markets dropped sharply, though India held firm and European markets largely stabilized. This followed Wall Street’s decline the previous day.
Higher-than-expected U.S. inflation figures had pulled down American markets, sparking renewed concern the Federal Reserve might hike interest rates again. Tech stocks with high valuations took a particularly hard hit. Here’s how things could play out.
Asian Markets Feel Tech Sell-Off Pressure
Asian equity markets mostly fell , driven by a deepening correction in artificial intelligence and semiconductor stocks. South Korea’s Kospi index lost over 7%, extending its slide over several sessions, and Japan’s Nikkei 225 was down almost 5%.
Chip makers like Samsung Electronics and SK Hynix led these declines. As interest rates climb, investors are questioning the long-term viability of big data center investments. The IMF noted that if AI assets are revalued, Asia might feel the impact more acutely, considering its central role in technology supply chains.
India, however, bucked the regional trend. The country’s BSE Sensex index climbed over 1,530 points, or 2.1%, finishing near a two-week high above 74,300. The Nifty 50 also got past 22,900.
This rally was driven by strong buying in major banking and industrial companies, including ICICI Bank and Reliance Industries. Optimism surrounding domestic company earnings, particularly from leading IT firms, helped the market detach from the broader regional decline.
Europe Mixed, With Tech and Energy in Focus
European markets started the day with moderate activity. The Stoxx Europe 600 index hovered mostly flat or dipped slightly in early trading, but the UK’s FTSE 100 and France’s CAC 40 both managed modest gains by day’s end.
The region’s smaller stake in specialized AI semiconductor firms offered a bit of a buffer. Lower government bond yields and softer energy prices also took some pressure off the market.
US Pre-Market Nasdaq Weak, Dow Steady
n pre-market trading, Nasdaq 100 futures fell about 1.1%, S&P 500 futures were down 0.3%, and Dow futures rose slightly, about 0.3%.
This suggests a split, with growth-focused stocks feeling the heat, while more established industrial and financial firms are holding up better.
That comes after the previous day’s trading. Worse-than-expected inflation figures sent chip stocks down 4.3% and the Nasdaq falling 1.9%, which was its largest single-day loss since July 23.
CoreWeave and Dell were among the biggest losers in pre-market trading. News also tied the weakness to Anthropic’s third-quarter revenue report, which hinted at slower growth.
As the market opens, we’re anticipating a choppy session, mostly driven by tech stocks, not a broader market meltdown.
Two important economic reports could shift market sentiment. September’s Producer Price Index (PPI) data, forecast to show a 0.5% monthly rise, and retail sales numbers. If producer prices come in higher than expected, that could deepen Wednesday’s inflation worries and push the Nasdaq down further.
Expect market volatility to remain high as investors weigh inflation data against the tech sector’s growth outlook .
Why did most Asian markets decline today?
Most Asian markets fell today because hotter-than-expected U.S. inflation figures fueled a sell-off in AI and semiconductor stocks, which raised concerns about rising interest rates and the cost of funding data-center expansion.
What supported the strong rally in Indian equities?
Indian equities rallied thanks to solid gains in IT stocks, a stronger rupee, lower crude oil prices, and good domestic earnings sentiment. As a result, the Sensex and Nifty performed better than the wider decline seen across Asian markets.
What high-impact US data is due today?
Today’s release of September producer prices (PPI) and retail sales figures could heighten concerns about more rate increases.
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