Global markets were all over the map today. As much as the Dow Jones Industrial Average tanked over the last three months, the S&P 500 and Nasdaq Composite have both rocketed up to all-time highs. The Dow dropped 220.42 points, or 0.48%, to close at 45,490.92. At the same time, the S&P 500 capped the day up 0.3%, setting a closing record in 6,532.04. The Nasdaq Composite gained a little ground, finishing at 21,886.06, an all-time closing high itself.
The opposing trends in the US public markets underscore the lasting power of investor sentiment and current market dynamics. As the S&P 500 climbs to an all-time high, demonstrating investors’ strong belief in a number of sectors, the Dow feels the pain. The Nasdaq Composite is up slightly behind this advance, suggesting that investors are still interested in tech stocks. These shares have been an indispensable force behind accelerating momentum the last few months.
Across the Pacific, the Nikkei 225 led gains in Asia, rising to a daily record high of 44,251.65—an astonishing achievement given Japan’s lost decade. This big jump is a reflection of increased hope in the Japanese market, which many attribute to the recent positive economic data and corporate earnings report. The Nikkei’s index performance is a world apart from other Asian indices.
The Australian ASX/S&P 200 closed down 0.19%. This drop further underscores the point that investors are playing it safe as they seek clarity in a cloudy global economic picture. In line with that, the CSI 300 opened down 0.15% this morning, showing fears over Chinese economic growth. Hong Kong’s Hang Seng Index was the worst-performing major index, tumbling 1.19%. Concurrently, the Hang Seng Tech Index dropped 1.3%, reflecting a broader rout for Hong Kong’s technology stocks.
Market performances are diverging, raising questions about what comes next. As investors grapple with turns in the economic cycle and monetary policy, there’s risk for increased volatility. Analysts caution that despite the resiliency of US markets, a storm is brewing in other parts of the world that is likely to affect growth moving forward.