The global markets are in a state of flux, with a mix of positive and negative trends across various sectors. The ASX is set to rise, with futures indicating a gain of 0.5%, but the tech stocks are weighing it down. The Dow Jones Industrial Average has hit a record high, but the tech stocks are also putting pressure on the market. The S&P 500 finished the day virtually unchanged, with seven out of every ten stocks rising, but the tech stocks are dragging it down. The Australian dollar is stronger at US$0.6918, and the US dollar is also strong. The US labor market is showing growth, but it's not enough to keep inflation in check. The Federal Reserve may feel less need to raise interest rates if inflation slows in the upcoming months. The yield on the 10-year Treasury is at 4.48%, and traders see an 82% chance that the Fed will not raise the federal funds rate at its next meeting. The labor market isn't overheating, and the data could allow the Fed to wait through the summer to get more clues about how inflation is behaving before having to decide on hiking rates. On Wall Street, the company behind LaCroix sparkling waters climbed 7.5%, and Dollar Tree rose 2.4% after the retailer approved a program to send up to $2.5 billion to its shareholders by buying back its stock. Stocks of companies in the crypto industry were also strong after the price of bitcoin rose roughly 2%. But more drops for computer chip companies weighed on indexes. They've come under pressure because of worries that their stock prices shot too high in the frenzy around AI and that all the spending on chips and data centers may not result in as much profit and productivity growth as hoped. Memory maker Micron Technology erased an early gain to drop 5.5%, a day after plunging 10.6%. Nvidia fell 1.4%, and Lam Research sank 10.2%. They were some of the heaviest weights on the S&P 500 because they've grown so huge in size amid AI mania. Nvidia has a total value of nearly $4.7 trillion, for example, which means that its stock's movements have more weight on the S&P 500 than any other. In stock markets abroad, continued drops for chip companies sent indexes sharply lower in several Asian markets. South Korea's Kospi index sank 7.9% due to losses for companies like SK Hynix. That's its worst drop since a 10% plunge a little more than a week ago. Indexes also fell 2.5% in Tokyo and 2% in Shanghai. European indexes were stronger, and France's CAC 40 rallied 1.7%. In the oil market, prices dropped in the morning but pared their losses as the day progressed. Brent crude, the international standard, settled at $71.80 per barrel, up 0.3%. The Market Recap newsletter is a wrap of the day's trading. Get it each weekday afternoon.
