Anticipated Decline in Global Markets: Technology Stocks Slow Down

Decline in Global Markets: Expectations for a Rebound

The rally in the US stock markets, led by technology stocks, took a break on Tuesday. Fed Chairman Jerome Powell did not signal that the bank would cut interest rates at the October meeting, raising two-way risks in the markets. Therefore, the S&P 500 closed the day with a loss of 0.55 percent, the first daily decline after three days of rises. The Nasdaq 100 closed down 0.7 percent. The "Magnificent Seven" index, which includes technology giants, fell 1.55 percent.

U.S. Futures Indices Flatten

On the new trading day, U.S. futures indices followed a flat course, while European futures displayed a negative outlook. The stock declines on Wall Street also triggered the first fall in Asian stock markets after three days of gains.

Asian Market Volatility

The MSCI Asia Pacific Index fell 0.2 percent, led by declines in Japan and Australia, which were closed for public holidays. In Hong Kong, stocks rose on the back of Super Typhoon Ragasa, with Alibaba Group Holding Ltd. gaining 5.6 percent on the announcement that it will increase investments in artificial intelligence. But trading volume on Hong Kong's benchmark index was about 30 percent below the average of the past 30 sessions in early deals.

Oil Prices Rise

As former US President Donald Trump toughened his rhetoric against Russia, defense sector stocks in Asia rose and oil prices also rose. Brent oil gained 1.6 percent on Tuesday, reaching $68 a barrel. US crude hovered around $64.