Asian Stocks Fall, US Stocks End Worst Month Since September
Asian stocks fell on Wednesday, with most markets in the region closed for a holiday. Meanwhile, US stocks closed out their worst month since September.
In Tokyo, the Nikkei 225 index lost 0.4%, down to 38,271.77. This followed news that the country's factory activity experienced a milder shrink in April, with the manufacturing purchasing managers' index rising to 49.6 from 48.2 in March.
Australia's S&P/ASX 200 dipped 1.1% to 7,581.90. Other markets in the region were closed due to the Labor Day holiday.
In the US, the S&P 500 tumbled 1.6% on Tuesday, ending its first losing month in the last six. The Dow Jones Industrial Average dropped 1.5%, and the Nasdaq composite lost 2%.
Stocks began sinking as soon as trading began, after a report showed US workers won bigger gains in wages and benefits than expected during the first three months of the year. This news fueled worries about inflation and potential interest rate hikes.
Traders are also anxious about what Fed Chair Jerome Powell may say about the rest of the year during the Federal Reserve's announcement on interest rates scheduled for Wednesday afternoon.
Despite the overall market decline, some individual stocks performed well. 3M rose 4.7% after reporting stronger results and revenue than forecast. Eli Lilly climbed 6% after turning in a better profit than expected on strong sales of its Mounjaro and Zepbound drugs for diabetes and obesity.
Stocks of cannabis companies also soared after The Associated Press reported the US Drug Enforcement Administration will move to reclassify marijuana as a less-dangerous drug. Cannabis producer Tilray Brands jumped 39.5%.
The earnings reporting season has largely been better than expected so far. Not only have the tech companies that dominate Wall Street done well, so have companies across a range of industries.