The Singapore stock market experienced a downturn on Tuesday, reversing the brief respite seen on Monday after it ended a three-day losing streak during which it dropped over 35 points, or 1 percent. The Straits Times Index (STI) now sits slightly above the 3,440-point mark and is anticipated to open lower again on Wednesday.
Globally, the forecast for Asian markets appears mixed to lower, with technology shares expected to suffer significant losses. European and U.S. markets also ended mixed to lower, causing Asian bourses to feel increased pressure.
The STI registered a modest decline on Tuesday, driven by losses in property stocks, gains in financials, and a mixed performance from industrials.
For the day, the index dipped by 2.41 points, or 0.07 percent, closing at 3,441.77 after fluctuating between 3,435.30 and 3,453.08.
Here's a breakdown of the active stocks: CapitaLand Investment fell by 1.09 percent, City Developments declined by 0.75 percent, DBS Group increased by 0.63 percent, and Hongkong Land dropped by 1.80 percent. Keppel DC REIT surged by 2.01 percent, Keppel Ltd decreased by 0.15 percent, Mapletree Industrial Trust rose by 0.43 percent, Mapletree Logistics Trust advanced by 0.77 percent, and Oversea-Chinese Banking Corporation saw a modest gain of 0.20 percent. Seatrium Limited decreased by 0.62 percent, SingTel fell by 0.65 percent, Thai Beverage dropped by 0.98 percent, and Wilmar International climbed by 1.61 percent. Yangzijiang Shipbuilding saw a decline of 1.14 percent. Notably, Emperador, Genting Singapore, CapitaLand Integrated Commercial Trust, ComfortDelGro, SATS, Sembcorp Industries, Singapore Technologies Engineering, Mapletree Pan Asia Commercial Trust, Yangzijiang Financial, and Frasers Centrepoint Trust remained unchanged.
The narrative from Wall Street tends toward the negative. The major averages started slightly higher but promptly lost momentum and ended with mixed results.
The Dow Jones Industrial Average rose by 203.40 points, or 0.50 percent, to close at 40,743.33. Meanwhile, the NASDAQ Composite plunged by 222.79 points, or 1.28 percent, to finish at 17,147.42, and the S&P 500 dropped by 27.10 points, or 0.50 percent, ending at 5,436.44.
Wall Street's mixed performance occurred as traders awaited the Federal Reserve’s monetary policy announcement expected later today. While the Fed is anticipated to keep interest rates unchanged, the accompanying statement could significantly influence the outlook for the central bank's decision in September.
The NASDAQ faced a sharp decline due to mounting pressure on tech stocks throughout the day, with significant losses by Nvidia (NVDA), Microsoft (MSFT), and Advanced Micro Devices (AMD).
Among tech stocks, semiconductor stocks performed especially poorly, leading to a 3.9 percent drop in the Philadelphia Semiconductor Index, marking its lowest closing level in over two months.
Oil prices also fell on Tuesday amid ongoing concerns about demand prospects and in anticipation of the Federal Reserve’s monetary policy announcement and upcoming inventory data. West Texas Intermediate crude oil futures for September closed down $1.08, or 1.42 percent, at $74.73 per barrel.
