Australian shares are set to open lower, after Nvidia pushed the Nasdaq, S&P 500 higher.

ASX futures were down 0.4% or 29 points as of 8:00am on Tuesday, suggesting a lower open.

In the US, a bounce in Nvidia shares pushed the tech-heavy Nasdaq Composite higher, snapping a three-session streak of declines.

The Nasdaq added 1.3%. The S&P 500 rose 0.4%. The Dow Jones Industrial Average lost 0.8%.

In commodity markets, Brent crude oil was down 1.3% to US$84.93 a barrel, while gold was flat at US$2,319.70.

In local bond markets, the yield on Australian 2 Year government bonds was down at 4.01% while the 10 Year yield was also down at 4.20%. US Treasury notes were up, with the 2 Year yield at 4.74% and the 10 Year yield at 4.25%.

The Australian dollar was 66.48 US cents, down from its previous close of 66.54. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was up at 100.26.


Chinese shares ended lower, weighed by semiconductor and tech hardware stocks. The benchmark Shanghai Composite Index fell 0.4% to 2,950.00, the Shenzhen Composite Index was 0.5% lower, while the ChiNext Price Index declined 1.8%. Investors are awaiting key economic data due later this week and more policy support expected from the Chinese Communist Party's July political meeting. Among major stocks, SMIC declined 3.6%, extending losses after the U.S. Treasury detailed proposed plans to restrict U.S. investments in China on chips and AI tech. Foxconn Industrial Internet was 4.0% lower. Gainers included BYD, which was 1.6% higher, and Poly Developments & Holdings, up 1.2%.

Hong Kong's Hang Seng Index edged 0.25% higher to close at 18,072.90, led by the consumer- and technology-services sectors. Month-end repositioning may have driven some inflows, IG market strategist Yeap Jun Rong says in an email. However, any bounce is quickly sold, as witnessed in the latest session, Yeap says. Among advancers, rose 1.2%, BYD added 0.8% and Meituan was 1.2% higher. Shanghai Henlius Biotech ended 19% higher after it agreed to a buyout offer by Chinese conglomerate Fosun International in a deal valuing the drugmaker at $1.7 billion. The Hang Seng Tech Index closed 0.6% lower at 3,655.46.

Japanese stocks ended higher, led by gains in carmakers, trading houses, and banks, as a weak yen raised hopes for earnings growth. Toyota Motor gained 4.6%, Itochu climbed 4.6% and Mizuho Financial Group advanced 4.4%. The Nikkei Stock Average rose 0.9% to 39,173.15. Investors are focusing on economic data and any comments by Japanese officials on the yen's recent sharp depreciation. The 10-year Japanese government bond yield rose one basis point to 0.995%.

Indian shares ended higher, supported by tech and bank stocks. The benchmark Sensex Index ended 0.9% higher at 78,053.52, crossing the 78,000 level for the first time. Among index heavyweights, Axis Bank gained 3.7% and ICICI Bank was 2.5% higher. Infosys rose 0.9% and HCL Technologies added 0.4%. Among individual movers, Amara Raja Energy & Mobility surged 20% after its unit signed a licensing agreement with a subsidiary of China's Gotion High-Tech to produce lithium-ion batteries for electric vehicles in India. Bandhan Bank slipped 1.95% following news that the Reserve Bank of India appointed a director to the lender's board, which signals increasing oversight.


Stocks in the U.K. slipped Tuesday, as the FTSE 100 Index declined 0.4% to 8247.79.

Among large companies, Ocado Group PLC posted the largest decline, dropping 7.1%, followed by shares of Bodycote PLC, which dropped 5.6%. Shares of Burberry Group PLC fell 4.5%.

Carnival PLC was the biggest gainer during the session, surging 9.4%, and Helios Towers PLC surged 2.7%. Admiral Group PLC rounded out the top three movers on Tuesday, as shares gained 2.3%.

In Europe, shares closed lower, with the STOXX Europe 600 Index slipping 0.2% to 517.70, Germany's DAX lost 0.8% to 18,177.62 and France's CAC 40 dropped 0.6% to 7,662.30.

North America

A bounce in Nvidia shares pushed the tech-heavy Nasdaq Composite higher, snapping a three-session streak of declines.

The Nasdaq added 1.3%. The S&P 500 rose 0.4%. The Dow Jones Industrial Average lost 0.8%.

The moves Tuesday continued a topsy-turvy stretch for major indexes, in which the Nasdaq and blue-chip Dow have headed in opposite directions. Such divergence isn't unheard of, but it signals that investors are shuffling their bets.

The two indexes have moved in different directions in eight out of the past 10 trading days, something that hasn't happened since a 10-day stretch ending in April 1995, according to Dow Jones Market Data.

Driving much of the action: Nvidia, which isn't included in the Dow. The artificial-intelligence chip-making giant briefly became the world's most valuable listed company last week, then tumbled into correction territory to kick off the week. Tuesday, Nvidia shares bounced 6.8% after shedding around $430 billion in market cap within just days.

It isn't just the major indexes moving in different directions. Individual shares within the S&P 500 have been sharply diverging, driving correlation among stocks in the index to some of the lowest levels of the past two decades, according to Bank of America.

In corporate news, Carnival reported adjusted quarterly earnings of 11 cents a share, surprising analysts who had expected a small loss. The cruise company's stock jumped 8.7%, its sixth session of gains.

Airbus shares sank 9.4% after the plane maker said that new production challenges would prevent it from hitting profit targets. The European company told investors late Monday that it would miss this year's annual delivery target after disclosing new delays and hiccups in its supply chain.

Many investors have also been taking a closer look at economic data trickling in, on edge that the strong run for the jobs market and broader economy may be turning a corner.

Fresh data on Tuesday showed that U.S. consumers grew a little less confident this month.

The Conference Board said its consumer-confidence index slipped to 100.4, from last month's 101.3.

"There are definite pockets of weakness in the economy," said Rick de los Reyes, a portfolio manager at T. Rowe Price.

In other assets, the yield on the 10-year Treasury note fell to 4.237% from 4.248% on Monday. Brent crude futures lost 1.2% to $85.01 a barrel, the biggest one-day decline since early June.

Parag Thatte, a strategist at Deutsche Bank, said that some of his clients appear reluctant to jump into the S&P 500 after its nearly 15% rally in the first half of 2024.

"There's still a lot of skepticism out there," Thatte said. "If you're in tech, you're happy. Anybody outside that has not enjoyed the strong run just yet."

The big question for many investors is whether the U.S. economy is barreling toward the end of its impressive recovery since the depths of the Covid-19 pandemic. Thatte said the economy still has legs, and the gains enjoyed by technology giants could extend to other corners of the markets.

"We think the cycle can go on for a while," Thatte said, especially if higher productivity boosts economic growth in coming months.