Global Markets Between Asian Gains and Wall Street Pressures: Asian markets opened higher, supported by technological company gains.

Nasdaq 100 futures recovered from early losses after Wall Street buyers stepped in to halt declines late in the U.S. trading session.
In the MSCI Asia Pacific Technology Index, two stocks rose for every one that declined.

Advantest Corp and Samsung were among the gainers,

while Taiwan Semiconductor Manufacturing climbed 0.9% after its steepest daily drop in four months.

Nasdaq 100 futures also rose 0.1%.

Contents

Commodities and Bonds Movements
U.S. Tech Under Pressure
Early Bubble Warnings

Wall Street Rebounds

Fed Expectations

High Valuations

Commodities and Bonds Movements

Oil held onto its gains after a report showed a decline in U.S. inventories,

while U.S. Treasuries steadied following gains across the curve in the previous session.

In Asia, the yield on Japan’s 20-year government bonds rose to its highest level since 1999,

while China’s 30-year government bond yield reached its highest since December,

Driven by a wave of selling alongside a rally in local stocks.

U.S. Tech Under Pressure

In contrast, concerns about overvaluation have risen after sharp gains since April.

U.S. mega-cap technology stocks faced heavy pressure over the past two sessions.

Attention now turns to the Jackson Hole meeting in Wyoming,

where investors await Federal Reserve Chair Jerome Powell’s speech.

Kyle Rodda, senior market analyst at Capital.com in Melbourne, said:
“There is currently a downward trend in equities,

With expectations of disappointment at Jackson Hole amid doubts over how

quickly the Fed may pivot to easing—or whether it will happen at all.”

Early Bubble Warnings

Technology stocks fell again on Wednesday as the Nasdaq 100 posted its second consecutive decline.

At the same time, the “Magnificent Seven” — Alphabet, Amazon, Nvidia, Apple, Meta, Microsoft, and Tesla

dropped for the fourth straight session, marking their longest losing streak since mid-April.

Howard Marks, co-founder of Oaktree Capital Management,

warned that U.S. equities may be “in the early stages of a bubble,”

However, the primary correction point has yet to arrive.

Losses in tech giants also dragged the S&P 500 down for a fourth straight session,

though it partially recovered from its intraday lows. Matt Maley of Miller Tabak cautioned:
“Sector rotation won’t happen unless tech stocks stabilize.

If they continue falling, the only rotation will be toward cash.”

Wall Street Rebounds in Final Moments

After a tough week of heavy selling, U.S. stocks rebounded in the final moments

of Wednesday’s session as buyers stepped in to support the market.

However, pressure on large-cap tech stocks remained,

With inflation concerns still weighing heavily.

The S&P 500 ended just 0.2% lower as most sectors recovered,

while the Nasdaq 100 closed down 0.6% after being down nearly 2% earlier in the session.

In a note, Andrew Tyler of JPMorgan Chase wrote: “Today was a test for dip buyers,

and with PMI data due Thursday alongside Powell’s Jackson Hole speech,

Both could prove pivotal in shifting the market direction or narrative.”

Fed Expectations and Hawkish Signals

Minutes from the Federal Open Market Committee (FOMC) meeting on July 29–30

Most members considered inflation risks greater than concerns over the labor market,

with internal divisions fueled by tariffs.

Despite weak employment data, most members agreed that

“The upside risks to inflation outweigh the risks to the labor market.”

Meanwhile, interest-rate swap contracts reflect strong expectations of a rate cut in September.

Chris Zaccarelli of Northwest Asset Management noted:

“Powell is unlikely to reveal his hand now and will emphasize the Fed’s reliance on data.”
David Russell of TradeStation argued the minutes “align with Powell’s hawkish comments.”

Suggesting they could dampen optimism.

Marco Cacserraghi of Evercore added that the minutes were “somewhat outdated.”

given recent developments like the weaker-than-expected July jobs report, but said:
“These conditions support our view that the Fed will cut rates in September unless

the labor market tightens unexpectedly or new negative inflation data emerges.”
Separately, Fed Governor Lisa Cook reaffirmed her commitment to remain in office,

Defying calls from President Donald Trump for her resignation over alleged real estate fraud.

High Valuations and Narrow Margins.

Carol Schleif of BMO Private Wealth said,

Equity valuations are currently very high, leaving little room for disappointment.

The market is pricing in a bright future, justified mainly by earnings far exceeding expectations,

alongside greater clarity on trade and tax policies.”

Global Markets Between Asian Gains and Wall Street Pressures:

Global Markets Between Asian Gains and Wall Street Pressures

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