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The Nasdaq is on track to end the week higher amid a tech-led rebound in the U.S.
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Asian markets trailed U.S. markets this week, also pressured by higher oil prices, a global rise in bond yields, and tighter monetary policy expectations.
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However, Asian stocks rebounded on Friday after Wall Street’s tech-led rally and easing oil prices.
U.S. stock markets saw a volatile week through Sept. 17 as the Federal Reserve’s key interest rate decision, along with rising oil prices and long-dated Treasury yields, weighed on investor sentiment.
Meanwhile, top Asian markets, including China, Japan, Taiwan and South Korea stocks, also trailed U.S. markets in volatility to trend lower.
However, the tech-heavy Nasdaq index is the only one on track to post gains this week, outperforming its U.S. counterparts and Asia-indexed funds.
US Markets Vs Asia Markets
The Invesco QQQ Trust (QQQ), which tracks the Nasdaq, is on track to post gains this week, while the SPDR S&P 500 ETF Trust (SPY) and SPDR Dow Jones Industrial Average ETF (DIA) are on track to end the week lower.
Meanwhile, the iShares MSCI China ETF (MCHI), iShares MSCI Japan ETF (EWJ), iShares MSCI Taiwan ETF (EWT), and iShares MSCI South Korea ETF (EWY) are also on track to end the week lower.
What’s Driving Nasdaq Higher?
The Nasdaq is on track to end the week higher amid a tech-led rebound in the U.S. following the Federal Reserve’s first interest rate hike in three years, which led to a decline in oil prices and long-dated U.S. Treasury yields that had been climbing to multi-year highs earlier in the week.
On Thursday, the index jumped 1.69%, its steepest climb in more than six weeks. Semiconductor stocks buoyed the index, with top chipmakers like Nvidia Corp. (NVDA), Micron Technologies (MU), and Advanced Micro Devices (AMD) posting gains at the close, as markets appeared to dismiss recent fears about AI’s rapid growth. Software stocks also posted significant gains.
Rebecca Walser, CEO of Walser Wealth Management, said in an interview with Schwab Network that markets “have to be invested in the technology revolution,” despite potential volatility ahead of the mid-term elections.
What’s Happening In Asian Markets?
Asian markets trailed the U.S., also pressured by higher oil prices, global rise in bond yields, and tighter monetary policy expectations.
However, the markets rebounded on Friday after Wall Street’s tech-led rally and easing oil prices.