Shares mostly retreated in Asia on Wednesday after U.S. stocks hit all-time highs, lifted by expectations of fat corporate earnings.
asserted
stocks → retreat → earnings
U.S. futures were little changed and oil prices advanced.
asserted
prices → advance → ?
In Tokyo, the Nikkei 225 lost 0.9% to 70,284.81, while the Kospi in South Korea also shed 0.9%, to 6,876.76.
asserted
Kospi → lose → 6,876.76
Hong Kong’s Hang Seng fell 0.6% to 24,129.96 and Taiwan’s Taiex edged 0.2% lower.
asserted
Taiex → fall → 24,129.96
Markets in Shanghai were closed for a national holiday.
asserted
Markets → close → holiday
In Australia, the S&P/ASX 200 edged 0.1% higher to 8,740.10.
asserted
ASX → edge → 8,740.10
On Tuesday, U.S. stocks forayed into new heights despite an array of challenges.
asserted
stocks → foray → challenges
The S&P 500 climbed 0.6% to a record of 7,818.93, topping its all-time high set in August.
asserted
S&P → climb → August
Despite worries over the Iran war, high inflation and pressures from the bond market, the index at the heart of many 401(k) accounts has soared 23% since hitting a trough in late March.
asserted
index → soar → March
The Dow Jones Industrial Average added 0.5% to 51,521.28, while the Nasdaq composite tacked 0.4% onto its own all-time high set the day before, closing at 27,599.79.
asserted
composite → add → 27,599.79
“The rally reflected confidence that corporate earnings, particularly across technology and AI-related sectors, can withstand elevated energy costs and restrictive interest rates,” Ng Jing Wen of Mizuho Bank said in a commentary.
asserted
Wen → reflect → commentary
“The resilience suggests investors continue to prioritize earnings momentum over near-term inflation risks,” she said.
uncertain
she → suggest → risks
Record-high stock prices are helping investors feel better about their finances, or at least less bad, while Americans are generally feeling discouraged about keeping up with the fast-rising cost of living.
asserted
Americans → help → living
Many of the fears that sent the U.S. stock market to its bottom in March have indeed come true.
asserted
that → send → March
Oil prices are high because of the war with Iran, which has made inflation worse.
asserted
inflation → make → Iran
Yields have cranked higher in the bond market, which threatens to slow the economy by making it more expensive for everyone to borrow money.
asserted
everyone → crank → money
And Americans broadly say they’re feeling more pessimistic about the economy and where it’s heading.
asserted
it → say → economy
But one vital source of support has persisted: strong corporate earnings.
asserted
source → persist → support
Lamb Weston, which sells frozen fries and other potato products, said on Tuesday that its profit and revenue during its latest quarter topped its projections, for example.
asserted
profit → sell → example
The results also beat analysts’ expectations, and its stock rallied 7.5%.
asserted
stock → beat → expectations
All kinds of companies are expected to report robust profits for the July through September quarter.
asserted
kinds → expect → quarter
Delta Air Lines will report its third-quarter results on Friday, with several of the country’s biggest banks headlining next week.
asserted
several → report → banks
Analysts expect companies in the S&P 500 to deliver overall growth of nearly 30% in earnings per share from a year earlier, according to data provider FactSet.
uncertain
companies → expect → FactSet
If they’re correct, it would be the third straight quarter of growth better than 25%.
asserted
it → ’re → %
If companies fail to deliver such performances, stock prices could easily fall back from their records.
uncertain
prices → fail → records
Some critics also point to a possible bubble in stocks in the artificial-intelligence industry given how much they have soared in the frenzy around the technology.
asserted
they → point → technology
AI stocks have been a huge force driving the U.S. market to records, including Nvidia’s 28.3% surge so far this year.
asserted
stocks → drive → surge
That’s roughly double the broad market’s gain.
asserted
That → ’ → ?
Bond yields offered some slack on Tuesday after falling back from their highest levels in years or even decades.
asserted
yields → offer → years
The yield on the 10-year Treasury, which is the focal point of the U.S. bond market, eased to 5.28% from 5.31% late Monday.
asserted
which → ease → %
It fell after oil prices steadied somewhat.
asserted
prices → fall → ?
But crude prices rebounded early Wednesday.
asserted
prices → rebound → ?
That’s still below the nearly $110 it was at a few weeks ago.
asserted
it → ’ → 110
U.S. benchmark crude rose 0.9% to $90.21 per barrel.
asserted
crude → rise → barrel
Also early Wednesday, the U.S. dollar rose to 158.44 Japanese yen from 158.10 yen.
asserted
dollar → rise → yen
The euro slipped to $1.1238 from $1.1260.
asserted
euro → slip → 1.1260
AP Business Writer Stan Choe in New York contributed to this report.
asserted
Choe → contribute → report
The Aporia
