Global Markets Rally Fatigue: Stocks are Declining

Current Status of Global Markets

On Thursday, U.S. stocks declined amid a drop in technology shares. This decline overshadowed market optimism supported by strong earnings reports from companies like Delta Air Lines and PepsiCo Inc..

Decline in S&P 500 and Nasdaq Indices

This marks the second decline seen in the last ten sessions. The S&P 500 index fell by 0.3% as of Thursday after breaking its 33rd record of 2025 the day before. The Nasdaq 100 Index also decreased by approximately 0.2%.

Market Losses and Company Performances

Dell Technologies was among the companies experiencing the largest loss in the market, with a drop of 5.2%. Tesla Inc., on the other hand, closed down by 0.7% due to a safety investigation launched by automotive safety regulators regarding its partial automation software.

Meanwhile, 10 of the 11 sectors within the S&P 500 index experienced declines during the day, with only the consumer staples sector showing an increase.

Declining Trend in Asian Markets

While U.S. futures indices showed a slight increase, Asian stocks fell due to concerns that valuations had risen excessively following this year's uninterrupted gains in some technology companies. The MSCI Asia Pacific Index decreased by 0.8% due to the impact of chip stocks in Japan. Semiconductor Manufacturing International Corp. also faced a decline after it was reported that the stock's margin financing rate was lowered to zero under the pretense of high valuations.

Situation of Hong Kong and Korean Markets

Technology stocks in Hong Kong are preparing to close their worst week since early August. South Korean stocks, however, showed a recovery following a 6% increase in Samsung Electronics Co..

Current Status of the Dollar

The dollar experienced a slight decline after reaching its highest level since early August following a four-day increase. Bloomberg's dollar index is moving toward achieving its best weekly gain since mid-November 2024.