Asian stock markets mostly declined on Friday, following a brief pause in Wall Street's intense recent rally. At the same time, gold prices eased back from their record highs after a strong upward trend. Meanwhile, U.S. futures and oil prices experienced gains.
Nearly every major Asian index showed losses, except South Korea’s Kospi, which jumped 1.3% to 3,596.36 as it resumed trading after a holiday break. This rise was largely driven by a sharp rally in technology stocks, including SK Hynix, which surged nearly 7%. Samsung Electronics also climbed 5.4%, buoyed by news that Nvidia-supported startup Reflection AI successfully raised $2 billion in funding, pushing its valuation to $8 billion.
In Japan, the Nikkei 225 dropped 1% to 48,087.75, retracing some of the previous day’s strong gains after data revealed that producer prices increased more than economists had predicted for September. Hong Kong’s Hang Seng index fell 0.8% to 26,534.65, and the Shanghai Composite dipped 0.5% to 3,913.98. Australia’s S&P/ASX 200 inched down by 0.1% to 8,959.80, while Taiwan’s stock market remained closed due to a holiday.
On Thursday, the S&P 500 eased 0.3% from its latest record high, marking just its second loss in the past ten days, closing at 6,735.11. The Dow Jones Industrial Average retreated 0.5% to 46,358.42, and the Nasdaq composite slipped 0.1% to 23,024.63.
The price of gold also pulled back after an impressive rally this year, declining 2.4% to fall below the $4,000 per ounce mark. U.S. Treasury yields held steady in the bond market, taking a breather after significant moves mostly fueled by widespread expectations that the Federal Reserve will soon cut interest rates to support economic growth.
Financial markets have surged so sharply—such as the S&P 500’s 35% rise from an April low—that concerns are growing about whether prices have become overinflated. This anxiety is especially pronounced around the booming stocks tied to artificial intelligence technology, which some experts caution might be in a speculative bubble.
Dell Technologies suffered the largest drop within the S&P 500, losing 5.2%, even though it remains up nearly 11% for the week following optimistic forecasts about its AI business prospects unveiled at an investment conference earlier in the week. Tesla also pressured the market with its shares down 0.7%, after the National Highway Traffic Safety Administration announced a preliminary review of its “Full Self-Driving” system amid safety concerns.
These declines partially offset a 4.3% jump for Delta Air Lines, which exceeded profit expectations for the summer and projected a stronger earnings range for the fourth quarter. Delta’s president, Glen Hauenstein, mentioned a broad acceleration in sales over the past six weeks, especially in domestic business travel.
Corporate earnings reports like these have become increasingly important for gauging the U.S. economy’s health, especially since government shutdowns have delayed crucial economic data releases, such as weekly unemployment claims that typically help inform Wall Street’s trading decisions.
In commodities trading on Friday morning, U.S. crude oil futures edged up 10 cents to $61.61 per barrel, while Brent crude increased 5 cents to $65.27 per barrel. Currency markets saw the U.S. dollar weaken slightly against the Japanese yen, moving to 152.74 yen from 153.05 yen, and the euro gained marginally to $1.1572 from $1.1569.
But here’s where it gets controversial: With markets rising so relentlessly, is there a genuine economic recovery underway, or are investors caught in a speculative frenzy that could burst at any moment? Are AI-related tech stocks truly worth their soaring valuations, or is this the start of another dangerous bubble? Share your thoughts in the comments—do you think the current market optimism is justified, or are we heading for a correction?
