Global equities ended August on a weaker note, pressured by escalating tensions between the US and Iran and a hawkish speech from Fed Chair Warsh at Jackson Hole, according to Deutsche Bank’s Jim Reid [1]. On Monday, the S&P 500 declined by -0.33% following a -0.36% drop on Friday, while Europe’s Stoxx 600 fell -0.62% after gaining +0.51% the previous Friday [1]. Tech stocks showed relative resilience, with the Nasdaq down only -0.12% after a -0.52% decline on Friday, supported by a rebound in the Philly semiconductor index (+0.57%) after its sharp -3.47% fall on Friday [1].
The cautious market sentiment extended into Asian trading, where most major indices posted modest declines. The Hang Seng was the largest underperformer, dropping -1.00%, while the KOSPI (-0.08%), Nikkei (-0.26%), CSI 300 (-0.06%), and S&P/ASX 200 (-0.32%) also traded in the red [1].
Upcoming tech earnings could influence sentiment, with Palo Alto Networks and Dell reporting today, followed by Broadcom and Snowflake tomorrow [1]. The overall market tone remains cautious, with risk appetite subdued due to ongoing geopolitical concerns and expectations of tighter monetary policy [1].
CONCLUSION
Global equities faced renewed pressure from geopolitical tensions and hawkish central bank commentary, leading to declines across major indices. While tech stocks showed some resilience, overall risk sentiment remains cautious. Investors are closely watching upcoming tech earnings for further market direction.