Stock market crash: Major Asian stock markets suffered strong losses, with Japan’s Nikkei and Korea’s Kospi crashing 2 per cent each and Hang Seng dropping by a per cent during the session on November 7, following an up to 2 per cent fall on Wall Street overnight.
According to Reuters, the Nikkei was set to experience its worst week since the April tariff shock.
The S&P 500 index dropped 1.12 per cent, while the tech-heavy Nasdaq plunged 1.90 per cent on losses in tech major stocks, including Nvidia, Microsoft, and Amazon.
Growing concerns over the stretched valuations of the US stock market, largely due to the steep rise in AI-themed stocks, are prompting investors to book profits.
Nasdaq, which comprises most tech major stocks, has jumped 20 per cent this year so far.
Investors are now looking for fresh triggers to buy riskier stocks as the earnings season is coming to an end. The ongoing US government shutdown has created a dearth of economic prints, which is creating a sense of uncertainty in the market.
The expectation of another rate cut by the US Federal Reserve next month has also waned, further weighing on investors’ risk appetite.
The US Fed cut rates by 25 basis points in October, but Chair Jerome Powell indicated that a rate cut in December is not a “foregone conclusion.”
Experts believe the US jobs market trends and positive developments on trade negotiations between the US and major global economies, such as India and China, will shape market sentiment.
US President Donald Trump on Friday said he may visit India soon, and a trade deal with India was on the table.
(With inputs from Reuters, Bloomberg)
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