Asian markets followed Wall Street’s downward trend as investors grappled with the likelihood of continued high Treasury yields and dimming prospects for U.S. interest rate cuts. Wall Street’s recent sell-off was a reaction to strong economic data and Federal Reserve officials’ comments suggesting a pause in rate cuts. The market’s attention is now fixated on the upcoming personal consumption expenditures (PCE) index release, which could provide insights into inflation trends and influence the Fed’s rate decisions.In a significant consolidation within the energy sector, ConocoPhillips announced its acquisition of Marathon Oil in a $22.5 billion all-stock transaction that includes debt. The deal, expected to close in the fourth quarter, will enhance ConocoPhillips’ U.S. onshore portfolio and has led the company to plan a 34% dividend increase and a substantial share repurchase program.Amidst these developments, the Nasdaq Composite Index reached a milestone, surpassing the 17,000 mark for the first time, buoyed by robust corporate earnings, the booming AI sector, and initial bets on rate cuts. Notably, NVIDIA Corporation contributed to this growth with a strong earnings and revenue outlook, and a 10-to-1 stock split. However, the celebration may be short-lived as concerns over persistent inflation could dampen the rally’s momentum.
Key points
- Asian markets fell, echoing Wall Street’s decline amid concerns over rising Treasury yields and reduced expectations for U.
- ConocoPhillips is set to acquire Marathon Oil for $22.
- The Nasdaq Composite Index hit a new high, surpassing 17,000, driven by strong corporate earnings and the AI industry’s growth.
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interest rate cuts.
5 billion, planning to enhance dividends and share repurchases post-deal.
