Global stocks fall after Wall Street plunges, big tech firms retreat

BANGKOK (AP) — Stocks were mostly higher in Asia on Friday, with major markets except Shanghai and Taiwan posting modest gains.

U.S. oil and futures prices rose.

This follows a split on Wall Street on Thursday, where the general actions and other once-outcast sectors of the market advanced while Big Tech's star stocks gave back more of their stellar gains.

Tokyo's Nikkei 225 index was up 0.3 percent at 37,977.30 on Friday morning, after falling 3.3 percent the previous day on heavy selling in many markets.

Tokyo's core consumer price index rose 2.2 percent in July, rising for the third straight month to its highest level in four months, bolstering expectations that the Bank of Japan could raise its near-zero benchmark interest rate at a policy meeting next week.

Hong Kong's Hang Seng Index rose 0.2% to 17,033.91, while the Shanghai Composite Index slipped 0.2% to 2,881.23.

Australia's S&P/ASX 200 index jumped 0.9% to 7,929.70, while the Kospi in Seoul gained 0.7% to 2,730.53.

Taiwan’s Taiex shares fell 3.4% as they reopened after markets closed Thursday due to a typhoon, making up for Wednesday’s decline, which was the S&P 500’s worst loss since 2022. Taiwan Semiconductor Manufacturing Corp. plunged 5.6%, tracking declines in big tech companies.

In Bangkok, the SET rose 0.5%, while India's Sensex gained 0.3%.

On Thursday, the S&P 500 index lost 0.5% after falling the previous day, closing at 5,399.22 points. The Dow Jones Industrial Average gained 0.2% to 39,935.07 points, while the Nasdaq Composite fell 0.9% to 17,181.72 points.

The Russell 2000 index of small caps jumped 1.3%. It has gained 8.6% this month, compared with a 1.1% loss for the large cap S&P 500.

Continued losses for Nvidia and most of the handful of big tech stocks that have been largely responsible for the S&P 500's run to record highs this year weighed on the market. They had fallen a day earlier after earnings reports from You're here And Alphabet disappointed investors, raising fears that the markets frenzy around artificial intelligence technology has driven prices too high.

If the handful of actions The stocks of companies known as the “Wonderful Seven” have a huge impact on Wall Street because their market value has increased dramatically. That gives their stock movements an added influence on the S&P 500 and other indices.

Still, most U.S. stocks advanced Thursday after a Surprisingly positive report on the US economy raised hopes of profits small enterprises other previously unpopular market sectors.

The economy accelerated growth at an estimated annual rate of 2.8% from April to June, double the rate in the previous quarter but not enough to raise concerns about upward pressure on inflation.

An update is expected later Friday on the Federal Reserve's preferred inflation measure, but as it has has largely resumed its slowdownthe general expectation is that the Federal Reserve The Fed will begin cutting its key interest rate, which is the highest level in more than two decades. According to data from CME Group, after Thursday's report, traders still believe there is a 100% chance the Fed will begin doing so in September.

A rate cut would ease pressure that has built up on both the economy and financial markets, and investors believe it would provide a major boost to stocks whose earnings are more closely tied to the strength of the economy than those of big tech.

Airline stocks rose Thursday after American Airlines Group and Southwest Airlines Both airlines reported spring earnings that beat analysts' expectations. Southwest Airlines also announced a break with a 50-year tradition: It will begin assigning seats and selling premium seats to customers who want more legroom.

American Airlines rose 4.2% and Southwest Airlines rose 5.5%.

On the losing side of Wall Street was Ford Motor, which tumbled 18.4% after reporting lower-than-expected profits. net profit fell partly because of increased warranty and recall costs.

In other trading Friday morning, benchmark U.S. crude oil rose 15 cents to $78.43 a barrel in electronic trading on the New York Mercantile Exchange.

Brent crude, the international benchmark, also rose 15 cents to $81.54 a barrel.

The U.S. dollar fell from 153.93 yen to 153.79 Japanese yen. The euro rose from 1.0847 to 1.0859 dollars.

___

AP Business reporter Stan Choe contributed to this report.