Asian stocks fell on Wednesday as most markets in the region were closed for a holiday, while U.S. stocks closed out their worst month since September. Oil prices were lower and U.S. futures were mixed, adding to the uncertainty in the markets.
Tokyo’s Nikkei 225 index lost 0.4% after Japan’s factory activity experienced a milder shrink in April. The yen continued to struggle, with the U.S. dollar rising against it.
Australia’s S&P/ASX 200 also dipped 1.1%, while other markets in the region were closed for the Labor Day holiday.
On Tuesday, the S&P 500 tumbled 1.6% to end the month in the red, with the Dow Jones Industrial Average and the Nasdaq composite also posting losses.
Stocks began sinking as soon as trading began, following a report showing U.S. workers gaining bigger wage increases than expected. This raised concerns about inflation and the Federal Reserve’s interest rate policies.
GE Healthcare Technologies and F5 reported weaker results, while McDonald’s profit fell short of expectations due to weakening sales trends. However, 3M and Eli Lilly reported stronger results, helping to offset some of the market losses.
Cannabis stocks soared after reports of the DEA moving to reclassify marijuana as a less-dangerous drug. The earnings reporting season has been better than expected, with tech companies and other industries performing well.
In the bond market, the yield on the 10-year Treasury rose, while oil prices and currency trading also saw fluctuations.
Overall, the market remains volatile as investors await the Federal Reserve’s announcement on interest rates and guidance for the rest of the year.
