Global Stocks Extend Slide on Valuation Jitters and Fed Rate Uncertainty – Asia Market Wrap
Global stocks extended their slide into a fourth day as concerns over lofty valuations and mixed signals from Federal Reserve officials on interest rates sapped investor sentiment.
The MSCI All Country World Index declined 0.1% in the longest losing streak in a month. Asian shares fell 0.8%, the most in September, with drug companies slumping after President Donald Trump announced a 100% levy on branded or patented pharmaceutical products. S&P 500 futures were little changed while Nasdaq 100 futures dropped 0.1%. Contracts for Europe rose 0.4%.
The Trump administration is also weighing a plan to slash the US’s reliance on semiconductors made overseas, the Wall Street Journal reported. A gauge of the dollar held near the three-week high and Treasuries traded in a narrow range, heightening focus on the Fed’s preferred inflation gauge which is due for release Friday.
After a $15 trillion rebound in global equities from April’s lows, traders now face a wall of uncertainty as tariff headlines return to unsettle markets. The Fed’s next policy move, the upcoming earnings season, and the threat of a US government shutdown are also weighing on sentiment. Attention now turns to Friday’s inflation report after strong US GDP data complicated the outlook for further rate cuts.
