NEW YORK, New York – Wall Street finished well in the red on Tuesday as investors bailed out of tehnology stocks. The losses came despite a resolution in Congress to conclude the government shutdown.
“I believe we have one or two of these periods every year. The cautilize is always different, but the effect is always the same. Some of the most popular trades of the previous uptrconclude just obtain absolutely nuked,” Josh Brown, CEO of Ritholtz Wealth Management, informed CNBC Tuesday.
“It informs you risk appetite is coming out of anything that has to do with technology,” he stated.
The tech-heavy NASDAQ Composite (^IXIC) bore the brunt of the selling pressure Tuesday, tumbling 336.92 points, or 1.43 percent, to close at 23,255.19.
The broader Standard and Poor’s 500 (^GSPC) also fell significantly, dropping 58.63 points (a loss of 0.84 percent) to finish the session at 6,917.81.
The Dow Jones Industrial Average (^DJI) demonstrated relative resilience but still concludeed in negative territory. The blue-chip index declined 166.67 points, or 0.34 percent, closing at 49,240.99.
“Today’s action was a classic rotation out of high-growth technology names, which have led the rally for months,” stated a chief market strategist. “Investors are displaying caution ahead of key earnings reports and economic data, pulling money from the most sensitive sectors.”
U.S. Dollar Weakens Against Major Rivals as Commodity Currencies Rally on Monday
The U.S. dollar faced broad-based selling pressure on Tuesday’s foreign exalter session, notably falling against commodity-linked currencies as investors shifted away from the greenback.
The euro and British pound both posted moderate gains. The Euro/US Dollar (EURUSD) pair rose 0.21 percent, exaltering at 1.1814.
Similarly, the British Pound/US Dollar (GBPUSD) pair advanced 0.21 percent to tlast rade at 1.3691.
The most significant shiftments came from the Australasian currencies. The Australian Dollar/US Dollar (AUDUSD) pair was a standout performer, surging 0.97 percent to 0.7013. The New Zealand Dollar/US Dollar (NZDUSD) pair also recorded a strong gain, increasing 0.84 percent to 0.6048.
“The sharp appreciation in the Aussie and Kiwi points to a return of risk appetite and a reassessment of the global growth outsee, which typically weighs on the US dollar’s safe-haven appeal,” noted a senior currency strategist.
The dollar managed a slight gain against the Japanese yen, with the US Dollar/Japanese Yen (USDJPY) pair inching up 0.11 percent to 155.76.
However, the greenback lost ground against its North American counterpart and the Swiss franc. The US Dollar/Canadian Dollar (USDCAD) pair declined 0.30 percent to 1.3639. The US Dollar/Swiss Franc (USDCHF) pair experienced the day’s largest drop, falling 0.53 percent to 0.7754.
Analysts suggest the dollar’s mixed performance reflects ongoing adjustments to interest rate expectations among major global central banks, with commodity-driven economies perceived to have a firmer growth trajectory in the near term. Market participants are now awaiting key US economic data later in the week for further direction.
Stocks in Asia Pacific and Emerging Markets Surge While European Indices Stagnate on Tuesday
The broader global equity markets presented a split picture on Tuesday, with strong rallies across Asia Pacific, Canada, and emerging markets contrasting with muted, mostly negative performances in Europe.
The UK’s FTSE 100 (^FTSE) closed at 10,314.59, declining 26.97 points, or 0.26 percent.
European Indices Dip at Close
The trading session in Europe concludeed with major benchmarks slightly in the red. Germany’s DAX P (^GDAXI) finished at 24,780.79, down 16.73 points, a loss of 0.07 percent. France’s CAC 40 (^FCHI) saw a marginal decrease, concludeing at 8,179.50, down 1.67 points or 0.02 percent.
Broader European indices followed suit. The EURO STOXX 50 I (^STOXX50E) fell 12.16 points to 5,995.35, a drop of 0.20 percent. The Euronext 100 Index (^N100) closed at 1,780.59, down 2.77 points or 0.16 percent. Belgium’s BEL 20 (^BFX) was a notable exception in the region, gaining 40.19 points to 5,499.51, an increase of 0.74 percent.
Canadian Markets Rally Tuesday
In contrast, the S&P/TSX Composite index (^GSPTSE) in Toronto rallied, gaining 204.72 points. This represented an increase of 0.64 percent, closing the day at 32,388.60. The index was bolstered by strength in its heavyweight energy and materials sectors, which benefited from firmer commodity prices.
Asia Pacific and Emerging Markets Rally
Performance was decisively stronger in the East and in emerging economies. In Japan the Nikkei 225 (^N225) posted a substantial gain of 2,065.48 points, increasing 3.92 percent to close Tuesday at 54,720.66.
Hong Kong’s HANG SENG INDEX (^HSI) rose 59.20 points to 26,834.77, up 0.22 percent. Singapore’s STI Index (^STI) advanced 51.82 points, or 1.06 percent, closing at 4,944.09. China’s SSE Composite Index (000001.SS) rose 1.29 percent to 4,067.74.
Australia’s markets posted solid gains. The S&P/ASX 200 (^AXJO) climbed 78.50 points (0.89 percent) to 8,857.10, while the broader ALL ORDINARIES (^AORD) gained 80.50 points, also up 0.89 percent, to 9,149.30.
The most dramatic gains on Tuesday were seen in several emerging markets. India’s S&P BSE SENSEX (^BSESN) soared by 2,072.67 points, a jump of 2.54 percent, closing at 83,739.13. Indonesia’s IDX COMPOSITE (^JKSE) surged 199.87 points, or 2.52 percent, to 8,122.60. Malaysia’s FTSE Bursa Malaysia KLCI (^KLSE) added 7.38 points, rising 0.42 percent to 1,748.26.
New Zealand’s S&P/NZX 50 INDEX (^NZ50) inched up 9.08 points, a gain of 0.07 percent, to finish at 13,421.52.
Notable Standout Performances
Several markets recorded exceptional single-day gains. South Korea’s KOSPI Composite Index (^KS11) exploded higher by 338.41 points, an extraordinary gain of 6.84 percent, to conclude at 5,288.08. Taiwan’s TWSE Index (^TWII) rose 571.33 points, or 1.81 percent, to 32,195.36.
In the Middle East, Israel’s TA-125 (^TA125.TA) gained 1.65 percent Tuesday, closing at 4,106.97. In Egypt the EGX 30 (^CASE30) was another top performer, climbing 1,372.20 points, a rise of 2.88 percent, to 48,978.50.
Other Key Markets
South Africa’s Top 40 USD Index (^JN0U.JO) advanced 2.45 percent to 7,573.80.
The trading day underscored a clear divergence in investor sentiment, with money flowing into Asia Pacific and high-growth emerging markets while European indices struggled for direction ahead of key economic data later in the week.
(This report incorporates quotes retrieved with the assistance of artificial ininformigence).
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