Tadawul All Share Index (TASI) fell on Wednesday, dropping 134 points (-1.25%) to close at 10,544.10. The index opened 39 points below its previous close, but it recovered some losses before the close; however, it still ended in the red zone. Overall, 16 out of 21 sectors closed in the red zone, and 55 shares rose while 199 fell. Banks (2.4%), Materials (-0.7%), and Utilities (-1.5%) sectors contributed the most to the index decline. Stockwise, Alrajhi (-2.6%), SNB (-3.8%), and RIBL (-5.4%) were the major contributors to the index decline. The trading activity witnessed an increase in volume and value of +56% and +38%, respectively, to reach 305mn shares and SAR 5.3bn in value traded.
Market Wrap International:
U.S. equities ended lower as investors reacted to the Federal Reserve's decision to leave interest rates unchanged, while a more hawkish policy tone, rising Treasury yields, and renewed concerns over AI-related valuations triggered broad selling in technology and semiconductor stocks. Higher oil prices linked to renewed Middle East tensions also reinforced inflation concerns, prompting a rotation away from growth shares despite relative resilience in some defensive sectors. The S&P 500 declined -1.5%, the Dow Jones Industrial Average fell -2.2%, and the NASDAQ dropped -1.7%.
European equities ended mixed as investors balanced caution ahead of central bank developments with a mixed corporate earnings season. Luxury goods and technology shares weighed on regional sentiment following disappointing earnings from several major companies, while gains in energy stocks, supported by stronger oil prices, helped limit broader losses. The FTSE 100 gained 0.3%, the DAX eased -0.01%, the CAC 40 declined -0.6%, and the EURO STOXX 600 fell -0.3%.
Asian markets are trading mixed as investors continue to assess the global technology selloff, monetary policy signals from the Federal Reserve, and regional corporate earnings. Chinese and Hong Kong equities were supported by selective buying and improving sentiment toward mainland technology shares, while Japanese equities remained under pressure from export-related weakness and South Korea's market fell sharply as semiconductor stocks extended losses following disappointing earnings. The SHCOMP gained 0.4%, the Hang Seng advanced 2.0%, the Nikkei 225 declined -1.5%, and the KOSPI dropped -6.0%.