Asian Markets Decline Ahead of Central Bank Meetings
Asian stock markets mostly declined in cautious trading on Tuesday, July 29, 2024, ahead of central bank meetings around the world. Investors are closely watching the Federal Reserve, the Bank of England, and the Bank of Japan.
Japan's Nikkei 225 lost 0.5%, Australia's S&P/ASX 200 decreased 0.9%, South Korea's Kospi shed 0.7%, Hong Kong's Hang Seng slipped 0.8%, and the Shanghai Composite declined 0.7%.
Mixed Finish for U.S. Stock Indexes
U.S. stock indexes drifted to a mixed finish on Monday, July 28, 2024, kicking off a week full of earnings reports and a Federal Reserve meeting. The S&P 500 edged up 0.1%, the Dow Jones Industrial Average slipped 0.1%, and the Nasdaq composite added 0.1%.
ON Semiconductor led the market with a jump of 11.5%, while McDonald's rose 3.7%. Oil-and-gas companies, however, were some of the heaviest weights on the market after the price of oil sank.
Big Tech Stocks Lose Momentum
Big Tech stocks, which drove the S&P 500 to dozens of records this year, have lost momentum this month amid criticism that they have grown too expensive. Investors are now looking for alternatives.
Smaller Stocks Outperform Big Tech
Smaller stocks have outperformed Big Tech recently, soaring on expectations that slowing inflation will get the Federal Reserve to soon begin cutting interest rates. The Russell 2000 index is up by a market-leading 9.2% for the month so far.
Federal Reserve Meeting This Week
The Fed will hold its latest policy meeting on interest rates this week, and an announcement will come Wednesday. Virtually no one expects a move then, but the widespread expectation is that it will begin easing at its following meeting in September.