The Money Edit

Opening bell

Opening bell

S&P futures 0.2%
Kospi 6,471.17 5.8%
Nikkei 225 65,326.42 3.2%
Brent crude 0.8% to $91.78
30-year Treasury yield above 5.3%
Hang Seng 0.1% to 25,495.07

AI selloff sweeps Asia before Fed minutes

Overnight

Wall Street fell for a third straight day on Tuesday, with the S&P 500 down 0.7%, the Nasdaq Composite down 1.3% and the Dow down 0.2%, as rising government bond yields and higher oil prices weighed on technology shares. The selling turned severe in Asia overnight, where South Korea's Kospi dropped 5.8% to 6,471.17 and Japan's Nikkei 225 fell 3.2% to 65,326.42 on heavy selling of companies tied to artificial intelligence. Europe is steadier, with Germany's DAX down 0.2% and France's CAC 40 up 0.3%, while US futures point to a slightly lower open, with S&P 500 futures off about 0.2%.

What to watch

The Federal Reserve releases the minutes of its July meeting at 2pm Eastern, meaning the written record of what officials actually argued about behind closed doors. Rates were left unchanged at 3.50% to 3.75% at that meeting, but three regional Fed presidents voted to raise them, so the question is how many others quietly leaned the same way without saying so in the vote. Target, Lowe's and TJX report earnings before the open, which gives a read on whether households are still spending, and the 30-year Treasury yield sitting above 5.3%, its highest since 2007, is worth watching because it sets the cost of long-term borrowing across the economy.

Sources