AP reports that in Hong Kong Asian benchmarks continued to rise on Tuesday after U.S. stocks recovered some of their losses from last week, which was the worst for the S&P 500 in more than a year. At the same time, the yen fell to new 34-year lows.

Futures in the U.S. were not clear, and the price of oil went up.

It’s worth noting that Japan’s manufacturing activity has been falling for 11 months in a row, reaching almost the break-even point in April (PMI of 49.9), according to data released Tuesday by au Jibun bank. However, the country’s stock market went up 0.1% to 37,471.73. The value of the yen fell even more, reaching a new 34-year low of 154.85 early Tuesday.

Hong Kong’s Hang Seng rose 1.2% to 16,715.15 points, while Shanghai’s Shanghai Composite index fell 0.6% to 3,025.76 points.

The S&P/ASX 200 in Australia went up 0.4% to 7,677.40. The Kospi in South Korea fell less than 0.1 percent to 2,628.14.

This week, the S&P 500 lost more than a quarter of its value. On Monday, it gained 0.9% to 5,010.60. The Nasdaq went up 1.1% to 15,451.31 and the Dow Jones Industrial Average went up 0.7% to 38,239.98.

There was a rally all over Wall Street, and most stocks went up. Tech stocks helped the S&P 500 get back on track after having their worst week since the COVID crash in 2020.

As bond market yields leveled off, Nvidia jumped 4.4% and Alphabet climbed 1.4%. The pressure on stocks got worse last week when yields went up. This was especially true for stocks that were thought to be the most expensive and making investors wait the longest for big growth.

There were also a lot of strong bank stocks after good profit reports. The stock price of Truist Financial went up 3.4% after it reported a higher-than-expected profit for the first quarter of the year.

They helped make up for Tesla’s 3.4% drop after the company announced more price cuts over the weekend. The stock price of Elon Musk’s electric car company has dropped more than 40% so far this year. Later today, the company will report its first-quarter results.

This is a big week for earnings reports in general. About 30% of the S&P 500 companies are going to report how much money they made in the first three months of the year. Plus the other companies that have become known as the “Magnificent Seven,” besides Tesla and Alphabet.

Ohsung Kwon and Savita Subramanian, two strategists, said in a BofA Global Research report that the gap in growth between the Magnificent Seven and the rest of the S&P 500 It needs to end this year.
The first report of the week came from Verizon Communications, which showed a drop in profit that wasn’t as bad as analysts thought it would be. It said that raising prices and taking other steps would help it make more money. After saying that revenue for the first quarter was lower than expected and that it expected the same amount of profit for the whole year, Verizon’s stock went from going up at the start to going down by 4.7%.

Companies are under even more pressure than usual to make more money and make more profits. In the short term, interest rates, which are another big thing that affects stock prices, don’t look like they will help much.

Last week, top Federal Reserve officials said they might have to keep interest rates high for a while to make sure inflation stays below their 2% goal. That was a big disappointment for the stock market. Hopes had been high after the Federal Reserve hinted earlier that interest rates might go down three times this year.

After inflation dropped sharply last year, it looked like rates would go down soon. But this year, a string of reports showing that inflation has stayed higher than expected has made people worry that progress has stopped.

The price of a barrel of U.S. benchmark crude rose 32 cents to $82.22. The world standard, Brent crude, went up 30 cents to $87.30 per barrel.

From 154.84 Japanese yen, the dollar fell to 154.75 yen. It went up from $1.0653 to $1.0656.

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