The Australian share market is expected to open even today, with futures indicating it will add 0.1% or 6 points to 7,719 when trade begins.
Nearly $50 billion was wiped from the bourse yesterday in the largest sell-off in more than a year.
US investors were cautious overnight, bracing for the US February consumer price index report, small business optimism index releases and corporate earnings announcements, all of which will shed light on the Federal Reserve's future monetary policy direction.
This comes in the wake of last week's ambiguous jobs report.
The Dow Jones index managed a slight gain of 0.1%, while the S&P 500 and Nasdaq index slipped.
Among the notable movements, Meta Platforms slumped 4.4%, leading a downturn among megacap growth and technology counterparts.
Super Micro Computer and AI specialist Nvidia also recorded losses, with shares dropping by 5.2% and 2% respectively.
The semiconductor sector also faced challenges, with the Philadelphia Semiconductor index retracting by 1.4% as companies like Advanced Micro Devices (NASDAQ:AMD) and Broadcom (NASDAQ:AVGO) experienced a decline ranging from 1.2% to 4.3%.
Boeing (NYSE:BA) in trouble
Another industry in stall mode was aviation – Boeing's shares fell by 3% following Alaska Airlines' announcement that it would cooperate with a US Department of Justice criminal investigation into a Boeing 737 MAX incident where a door blew out mid-flight.
European markets were volatile on Monday, particularly impacted by a sharp 8.9% fall in BE Semiconductor shares, amid concerns over the adoption of hybrid bonding technologies.
This led to a 2% decrease in the technology sector, with major chipmaker ASML (AS:ASML) also shedding 4.2%. Despite these challenges, gains in the real estate and food and beverage sectors helped mitigate broader market losses.
US consumer inflation expectations remain steady, with the year-ahead outlook holding at a three-year low of 3%.
The bond market saw activity ahead of the anticipated US consumer price index release, with yields on US government bonds rising.
Currencies and commodities
There was a strengthening of the US dollar against its peers overnight, with the Euro, Aussie dollar and Japanese yen all retreating.
Meanwhile, global oil prices showed minimal changes amid fluctuating demand signals and geopolitical tensions.
The Brent crude price rose by 13 US cents or 0.2% to US$82.21 a barrel, while the US Nymex crude price shed 8 US cents or 0.1% to US$77.93 a barrel.
Precious metals, notably gold, maintained strong positions, with futures prices slightly increasing, reflecting ongoing market interest.
The gold futures price rose by US$3.10 or 0.1% to US$2,188.60 an ounce, trading near its highest-ever level after a record rally last week. Spot gold was trading near US$2,181 an ounce at the US close.
Copper futures gained 1% and aluminium futures lifted 0.8% as the market awaited Chinese loan data for indications of demand.
Iron ore prices faced a setback, slumping US$4.05 or 3.5% to US$113 a tonne, due to lacklustre demand from China.
The Australian markets are awaiting updates on business and consumer confidence, with additional focus on several companies trading ex-dividend.
What’s happening in small caps?
The S&P/ASX Small Ordinaries closed down -1.32% to 3,033.1 yesterday.
Making news this morning, which you can read more about throughout the day with Proactive: