Asian stocks slide as tech jitters and fed uncertainty weigh

Asian markets fell sharply on Tuesday, mirroring losses on Wall Street as investor worries mounted over lofty tech valuations ahead of Nvidia’s earnings this week. Concerns are growing that the massive investments fueling this year’s AI-driven market rally may not deliver returns as quickly as expected.

Sentiment has also been dampened by uncertainty over whether the Federal Reserve will deliver a third consecutive interest rate cut next month, with stubborn inflation clashing against signs of a cooling US labor market. Investors are eyeing two key developments this week: Nvidia’s earnings report on Wednesday, seen as a barometer for the broader AI sector, and US jobs data due Thursday after delays linked to the government shutdown.

Market jitters intensified after reports that Peter Thiel’s hedge fund sold its entire Nvidia stake, valued at about $100 million. Analysts warn that even minor weakness in Nvidia’s performance could spark a sharp market reaction.

Expectations for a December rate cut remain split, with Fed officials expressing caution. While Governor Christopher Waller reiterated his support for another cut, other policymakers—including Jerome Powell and Philip Jefferson—signaled the need for prudence.

The downturn on Wall Street carried into Asia, with Tokyo, Sydney, Seoul and Taipei all dropping more than one percent. Markets in Hong Kong, Shanghai, Singapore and Wellington also fell. Bitcoin slid further amid risk aversion, trading near $91,300 and erasing all gains for the year.

Key market figures as of 0230 GMT showed major Asian indices in the red, oil prices lower, and only slight movement in major currency pairs.