Investing.com - On Tuesday, shares in the Asia-Pacific region saw an uptick, following the strong performance of US markets overnight as the technology sector lifted.
By 11:10 am AEST (1:10 am GMT) the S&P/ASX 200, KOSPI 200, and Nikkei 225 added 0.6%, 0.9% and 0.4%, respectively.
On Monday, major stock indices in the US experienced a significant rebound, largely attributable to a surge in technology shares. This recovery brought a sense of stability to the markets, following a turbulent end to the previous week.
The S&P 500 rose by 1.1%, snapping a three-day losing streak, largely due to the performance of NVIDIA Corporation (NASDAQ:NVDA) and other chip manufacturers. The NASDAQ Composite, known for its tech-heavy composition, advanced by 1.6% after a 4.2% drop over the previous three trading sessions. The Dow Jones Industrial Average also saw an increment of approximately 128 points or 0.3%.
These gains came in the wake of President Biden's announcement on Sunday of his decision to withdraw from his presidential run, adding a new element of uncertainty to an election that could significantly impact the markets and the economy.
However, investors and analysts seemed divided over the short-term implications of Biden's decision for the markets. Monday's market movements seemed to be influenced more by other factors, including recent declines in stocks, initially concentrated in the tech sector, but later spreading more broadly.
In terms of individual stock performance, Nvidia saw a 4.8% increase following a Reuters report that the chipmaker is developing a version of its AI chips compatible with US export controls to China. On the other hand, Verizon Communications Inc (NYSE:VZ) saw a 6.1% drop after reporting weaker-than-expected quarterly revenue.
In the bond market, the yield on the benchmark 10-year US Treasury note settled at 4.259%, up from 4.238% on Friday.
Investors are eagerly awaiting the forthcoming earnings results from large tech companies, including Google parent Alphabet Inc (NASDAQ:GOOGL) and Elon Musk's Tesla Inc (NASDAQ:TSLA), which could significantly influence whether the stock market momentum from Monday continues.
In the commodity markets, Brent crude oil decreased by 0.3% to US$82.26 a barrel, while gold prices remained steady at US$2,397.43.
In other parts of the world, European markets also ended the day on a high note, with the STOXX Europe 600 Index, Germany's DAX, and France's CAC 40 all reporting gains.
Meanwhile, in the UK, the FTSE 100 Index increased by 0.5% to 8198.78, led by Oxford Nanopore Technologies PLC and Ocado (LON:OCDO) Group PLC.