Stocks Fall on Fed and AI Valuations as the Pound Drops – Asia Market Wrap
Stocks fell as concerns about Fed rate cuts and bloated technology valuations impacted on sentiment. Crypto retreated.
Asian shares fell 1.5%, marking the first decline this week, with tech stocks heading for the largest drop since April. The decline concluded a week in which equities rose on expectations that the US government shutdown would end, allowing for data releases. That decreased after Fed officials’ comments dampened expectations for easing in December.
Contracts for the S&P 500 and Nasdaq 100 indices dipped 0.1% after the underlying gauges fell on Thursday. European stocks were also expected to decline.
Brent crude rose as much as 3% on rising risks to Russian shipments from Ukrainian military attacks and US sanctions. The Pound fell against all of its Group-of-10 rivals on news that UK Chancellor Reeves is considering cancelling plans to boost headline income tax rates in the upcoming budget.
In the commodities market, gold and silver traded higher, with both on track for significant weekly gains, buoyed in part by anticipation that the Fed will cut interest rates again next month. Gold remained close to $4,200 per ounce, up nearly 5% this week. Silver’s five-day gain was greater than 10%.
