US mega-cap technology stocks sell off, pulling down major indices. The NZD plummets after dovish RBNZ guidance. Asian markets are mixed as geopolitical tensions ease.
US tech stocks retreat, Asia mixed, ultra-dovish RBNZ triggered a Kiwi sell-off
US mega-cap technology stocks sold off yesterday, led by Artificial Intelligence (AI) juggernaut, Nvidia (-3.5%), that saw the S&P 500 and Nasdaq 100 shed -0.6% and -1.4% respectively due to their heavy concentration weightage towards the mega-cap technology stocks.
In contrast, the Dow Jones Industrial Average has less weightage on technology stocks, which managed to trade almost flat, supported by healthcare and industrial stocks. No clear catalyst for the underperformance of US technology stocks.
In today’s Asia session, mixed performances were seen across Asia Pacific stock markets. Japan’s Nikkei 225 tumbled by -1.5%. Hong Kong’s Hang Seng Index managed to reverse earlier losses to eke out an intraday gain of 0.2%, and Singapore’s Straits Times Index (STI) inched slightly higher by 0.1% at the time of writing.
In the FX market, the biggest mover in the Asia session was the Kiwi, which plummeted by -1.2% against the US dollar after the RBNZ issued an ultra-dovish monetary guidance that suggested that it has not done with its interest rate cut cycle, with the possibility of two more rate cuts down the road.
More positive signs are emerging that Ukraine and Russia are heading towards a ceasefire, a prelude to a peace deal, after media outlets reported that a package of security guarantees for Ukraine will take shape as soon as this week.
WTI crude oil has remained weak below the US$63.85/64.18 key short-term resistance as it probed the near-term support of US$62.50/barrel, printing an intraday low of US$62.59 in today’s Asia session.
Our YouTube video above contains the latest intraday technical analysis on the latest intraday technical analysis on US Wall Street 30, US Nas 100, US SPX 500, Hong Kong 33, Japan 225, Germany 30, EUR/USD, GBP/USD, AUD/USD, USD/JPY, Gold (XAU/USD), and West Texas Oil.
