(Bloomberg) -- Asia stocks slipped at the open Tuesday after weakness in the technology sector pulled U.S. indexes from all-time peaks, with investors weighing corporate earnings and recent spikes in virus cases. The yen hit its strongest level since early March.Shares fell in Japan and Australia and futures pointed lower in Hong Kong. U.S. contracts edged higher. The tech-heavy Nasdaq 100 Index underperformed in the U.S. session, while the S&P 500 Index also fell. Tesla Inc. led the declines after concerns about a fatal crash of one of its electric vehicles, which appeared to have no driver.Treasury yields slipped back below 1.6% and the dollar dipped.Investors are awaiting further confirmation of the private sector’s recovery from the pandemic as the earnings season gathers pace. The bright spot in the latest reports was the first revenue gain for International Business Machines Corp. in eleven quarters. Even with this latest pullback in major indexes, and the latest grim news on the spread of Covid-19, global stocks are trading near record highs.“We do think the market is a little overextended here,” Dave Sekera, chief U.S. market strategist at Morningstar Investment Services, told Bloomberg TV, adding that broad U.S. equities look about 5% overvalued. “Having said that we do still see value in a couple of areas, the value category being one.”Here are some key events to watch this week:Apple’s first product unveiling of the year on Tuesday.Reserve Bank of Australia releases minutes of its policy meeting on Tuesday.EIA crude oil inventory report on Wednesday.European Central Bank rate decision and President Christine Lagarde briefing on Thursday.U.S. releases new home sales dataThese are some of the main moves in markets:StocksS&P 500 futures were up 0.2% as of 9:05 a.m. in Tokyo. The S&P 500 fell 0.5%. The Nasdaq 100 fell 1%Japan’s Topix Index slid 1.5%Korea’s Kospi Index edged up 0.2%Australia’s S&P/ASX 200 Index slipped 0.4%Hong Kong’s Hang Seng Index futures retreated 0.5%CurrenciesThe yen extended overnight gains, rising 0.2% to 108.02 per dollarThe offshore yuan was at 6.5083 per dollarThe Bloomberg Dollar Spot Index fell 0.1%The euro was at $1.2044BondsThe yield on 10-year Treasuries slipped one basis point to 1.59%CommoditiesWest Texas Intermediate crude rose 0.2% to $63.50 a barrelGold was up 0.1% at $1,772.58 an ounceFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- U.S. stocks retreated from an all-time high as investors awaited the heart of the earnings season and more economic data later in the week. The dollar fell.Technology shares dragged down the S&P 500, which posted its biggest drop in almost four weeks. Tesla Inc. contributed the most to the decline as one of its electric cars that “no one” appeared to be driving crashed and killed two passengers. Small caps underperformed, with more than three-quarters of the stocks in the Russell 2000 closing lower. Copper prices surged to a seven-week high on prospects for strong demand and a pickup in inflation as economies rebound.In the U.S., the economic calendar is light this week until Thursday, with reports on unemployment claims and home sales among those scheduled for release. Robust economic data helped push stocks to another record last week despite concerns surrounding the spread of Covid-19 variants. Traders will look for further confirmation of the private sector’s recovery from the pandemic as the earnings season gathers pace. United Airlines Holdings Inc. and International Business Machines Corp. are among those with reports after the closing bell on Monday.“With a deluge of earnings activity this week from across industries, we may be in a bit of a holding pattern until investors digest any beats or misses on that front,” said Chris Larkin, managing director of trading and investing product at E*Trade Financial. “Bottom line is that short-term volatility is typical when we’re knocking around market highs as traders look to uncover value.”For Matt Maley, chief market strategist for Miller Tabak + Co., the sharp drop in Bitcoin over the weekend is having an impact on trading as well.“Whenever a headline-grabbing asset sees a big decline at a time when the broad market stands at an expensive level, it usually has a negative impact on the stock market, even if it’s only short-lived,” he wrote.Here are some key events to watch this week:Apple’s first product unveiling of the year on Tuesday.Reserve Bank of Australia releases minutes of its policy meeting on Tuesday.EIA crude oil inventory report on Wednesday.European Central Bank rate decision and President Christine Lagarde briefing on Thursday.U.S. releases new home sales data.These are some of the main moves in markets:StocksThe S&P 500 fell 0.5% as of 4:03 p.m. New York timeThe Nasdaq 100 fell 1%The Dow Jones Industrial Average fell 0.3%The Russell 2000 Index fell 1.4%The MSCI World index fell 0.3%CurrenciesThe Bloomberg Dollar Spot Index fell 0.4%The euro rose 0.5% to 1.2037The British pound rose 1.1% to 1.3986The Japanese yen rose 0.6% to 108.17 per dollarBondsThe yield on 10-year Treasuries advanced 2.1 basis points to 1.601%Germany’s 10-year yield advanced 2.8 basis points to 0.235%Britain’s 10-year yield declined 0.9 basis points to 0.755%CommoditiesWest Texas Intermediate crude rose 0.5% to $63 a barrelGold futures fell 0.5% to $1,771/oz(An earlier story misstated the copper price move in the second paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The currency was also lifted by a fall in the dollar, which slumped due to the Federal Reserve’s insistence that rising inflation will only be temporary, and that the central bank will not be taking action to combat it.