HONG KONG, July 24: Asian markets fell on Wednesday following a mixed batch of US earnings that did little to boost enthusiasm as investors look for the tech sector to continue filing blockbuster profits after pumping billions into artificial intelligence.
Traders are also shifting cautiously as they weigh the outlook for US policy post-election, with Democrat chances boosted by the expected nomination of Kamala Harris to replace Joe Biden to battle Donald Trump in November.
Equities have largely been boosted this year by growing expectations that the Federal Reserve will cut interest rates thanks to slowing inflation and a softening of the labour market and officials have indicated lately they are open to a move soon.
The prospect of a more welcoming borrowing environment has heavily benefited tech firms, particularly as they have invested massively in AI, seeing it as the next big money-spinner.
And profits have not disappointed in most cases, helping push their valuations ever higher, with chip titan Nvidia piling on around 150 percent for the year to date.
However, hopes for this earnings cycle were dented slightly Tuesday by news that profits at electric car giant Tesla fell 45 percent in the second quarter owing to price cuts and aggressive AI investment.
And payments behemoth Visa's reported revenue for its fiscal third quarter came in below estimates, though a forecast-beating report from Google-parent Alphabet did provide some support.
Alphabet and Tesla are part of the so-called "Magnificent Seven" tech kings who have been key to driving gains in markets that have pushed Wall Street to multiple record highs in 2024. —AFP
