Investing.com - Global markets opened with mixed performance on Thursday as tech giants led the decline in US stocks, and investors abandoned hopes of immediate interest rate cuts.
By 10.30 am AEST (12:30 am GMT), the S&P/ASX 200 added 0.2%, the KOSPI 200 lifted 1.3%, while the Nikkei 225 eased 0.3%.
In the US, the S&P 500 fell 0.6%, marking a fourth consecutive session of declines. Similarly, the Nasdaq Composite shed 1.1%, and the Dow Jones Industrial Average dipped by just 0.1%. This losing streak for the S&P 500 is the longest it has seen since the first week of 2024.
The beginning of 2024 saw a strong rally in stocks, largely due to expectations of the Federal Reserve lowering interest rates. However, April brought a change in narrative as a robust economy led Fed Chair Jerome Powell and other central bank officials to question this assumption.
Investors responded by pushing bond yields higher and prices lower, pressuring stocks. Despite this, the S&P 500 and Nasdaq remain solidly green for the year, indicating that investors are not ready to abandon the bull market.
Meanwhile, in the commodity markets, Brent crude oil was down 2.9% to $US87.40 a barrel, while gold was down 0.9% to $US2,361.02. The Australian dollar rose slightly from 63.99 to 64.33 US cents.
In Asia, Chinese shares closed higher, supported by small-cap stocks. However, Hong Kong's Hang Seng Index closed flat, while Indian and Japanese stocks ended lower on uncertainty over Fed policy and Middle East tensions.
European shares ticked higher on Wednesday, with the pan-European Stoxx Europe 600 up 0.06% to 498.52, the CAC 40 gaining 0.6% to 7,981.51 and Germany's DAX adding 0.02% to 17,770.02. The FTSE 100 snapped a two-trading day losing streak and closed up 0.35% as U.K. CPI fell to its lowest level since September 2021.