HONG KONG — Asian stocks showed mixed results on Tuesday following the Dow Jones Industrial Average’s record high, while major technology stocks caused a decline in the S&P 500 and Nasdaq composite.
U.S. futures were down as oil prices retreated from recent peaks, which had been influenced by escalating conflict between Israel and Hezbollah.
China’s industrial profits rose by 4.1% in July compared to last year, with profits for the first seven months increasing by 3.6%. This has sparked optimism in the market, mitigating concerns over sluggish domestic demand, a downturn in housing, and rising unemployment.
However, the imposition of additional tariffs on China has raised concerns about its manufacturing outlook. Canada recently announced a significant 100% tariff on imported Chinese electric vehicles and a 25% tariff on Chinese steel and aluminum, effective October 1. This will impact many EVs sourced from China, notably those manufactured by Tesla.
As a result, Tesla’s U.S.-listed shares dropped by 3.2% on Monday.
In regional markets, Hong Kong’s Hang Seng index rose by 0.3% to 17,842.97, while the Shanghai Composite index fell by 0.3% to 2,846.82. Japan’s Nikkei 225 closed 0.5% higher at 38,288.62. Australia’s S&P/ASX 200 dipped 0.2% to 8,071.20, and South Korea’s Kospi decreased by 0.3% to 2,689.15.
The S&P 500 experienced a 0.3% decline on Monday but remains within a tight range of its July record. The Nasdaq composite fell by 0.9%, adversely affected by major tech companies. Nvidia lost 2.2%, Microsoft decreased by 0.8%, Amazon was down 0.9%, Meta Platforms fell by 1.3%, and Tesla dropped 3.2%.
Conversely, the Dow increased by 0.2% to 41,240, surpassing its previous record established in mid-July. The Dow’s structure, with only Apple and Microsoft among the dominant tech stocks, lessened the pullback from declining big tech shares.
Bond yields remained stable, with the yield on the 10-year Treasury rising slightly to 3.82% from 3.80% late Friday.
The stock market is rebounding from a two-week winning streak, keeping the S&P 500 and Dow close to new highs. The mixed market results come ahead of a week rich in corporate earnings and a key inflation report from the government.
A positive report revealed that orders for durable goods from U.S. factories surged by 9.9% in July. Additionally, a consumer confidence report is expected Tuesday, with the U.S. set to revise its economic growth estimate for the second quarter on Thursday.
On Wednesday, semiconductor giant Nvidia is slated to announce its latest financial results, having significantly benefited from Wall Street’s artificial intelligence surge and boasting a valuation exceeding $3 trillion, with year-to-date stock growth surpassing 155%.
Other chipmakers also faced declines, with Broadcom down 4.1%, Advanced Micro Devices dropping 3.2%, and Lam Research sliding 3.4%.
Overall, the S&P 500 fell by 17.77 points to finish at 5,616.84. The Dow rose by 65.44 points to close at 41,240.52, while the Nasdaq receded by 152.03 points to settle at 17,725.76.
This week’s earnings reports will also include those from Kohl’s, Chewy, Salesforce, and Dollar General.
Investors eagerly anticipate Friday’s inflation data release, with the personal consumption expenditures (PCE) report for July being the Federal Reserve’s preferred inflation gauge.
In energy markets, benchmark U.S. crude prices dipped by 8 cents to $77.34 a barrel, and Brent crude fell by 8 cents to $80.28 a barrel.
In currency exchange, the U.S. dollar rose against the Japanese yen, reaching 144.81 yen, while the euro slightly increased to $1.1164 from $1.1161.
