Asian Stocks Poised to Slip, Oil Extends Decline: Markets Wrap

(Bloomberg) — Asian stocks looked set to slip Thursday after Wall Street gauges paused following a recent rally. Crude oil extended its declines as Iran reached an agreement with Oman on the Strait of Hormuz.

Equity-index futures for Japan, South Korea and Australia fell, while a gauge of Chinese companies listed in the US slid 1%. Earlier, the S&P 500 Index pulled back from a record high and an index of semiconductor stocks lost more than 1%, even as Nvidia Corp. advanced. SpaceX sank 14% despite strong earnings as about $101 billion of shares became eligible for trading.

Sentiment improved in early Asian trading, with S&P 500 Index futures rising 0.2%.

US crude edged lower on Thursday after Iran said it had reached an agreement with Oman on a proposed shipping route through the Strait of Hormuz, a potential step toward reopening the critical waterway. West Texas Intermediate fell 0.3% to below $75 per barrel. The dollar held its losses from the previous session, while gold hovered around $4,250 an ounce after posting its biggest gain since February.

Wednesday’s pause in the US stock rally came as investors reassessed valuations after AI-related shares rebounded sharply from last month’s bruising selloff, which hit several hedge funds. Traders are now focused on developments in the Middle East for clues on the direction of oil prices, with knock-on effects for inflation and central bank policy.

“AI-related results and commentary have sparked some profit taking,” said Colin Cieszynski, chief market strategist and portfolio manager at SIA Wealth Management Inc.

Meanwhile, Treasury yields were little changed on Wednesday after data showed the US services sector expanded at a steady pace in July, even as higher costs for labor and materials continued to weigh on businesses. Hiring slowed, with companies adding fewer workers than expected.

If Friday’s monthly payrolls report confirms signs of a cooling labor market, it may give Federal Reserve officials room to keep their focus on stubborn inflation, rather than employment.

Even so, policymakers continued to signal they are prepared to tighten policy further if price pressures persist. Minneapolis Fed President Neel Kashkari told CNBC the central bank should begin raising interest rates incrementally now, while Governor Lisa Cook said she was prepared to act if inflation failed to keep slowing.

“If I do not see signs of continued disinflation soon, I am prepared to act,” Cook said Wednesday in a speech at an event in Alaska. “With five years of above-target inflation, the risk grows that higher inflation may become entrenched in price- and wage-setting behavior, leading to persistence that would be much harder for us to attack.”

Corporate Highlights:

Alphabet Inc.’s Google is losing some of its most prominent artificial-intelligence veterans in a seismic overhaul that is casting doubt over leadership of a critical area of growth right as competition intensifies. Meta Platforms Inc. Chief Executive Officer Mark Zuckerberg announced the release of the company’s first AI coding agent, known as Muse Code, stepping up competition with OpenAI and Anthropic PBC. Microsoft Corp. generates most of its artificial intelligence revenue from OpenAI, according to new disclosures from the company. Eli Lilly & Co. boosted its 2026 sales guidance after its weight-loss drug franchise performed far better than expected in the second quarter, helping to counter investor concerns that the obesity drug boom is starting to slow. Some of the main moves in markets:

Stocks

S&P 500 futures rose 0.2% as of 8:17 a.m. Tokyo time Hang Seng futures fell 0.9% S&P/ASX 200 futures were little changed Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1556 The Japanese yen was little changed at 157.64 per dollar The offshore yuan was little changed at 6.7479 per dollar The Australian dollar was little changed at $0.7057 Cryptocurrencies

Bitcoin fell 0.3% to $64,608.71 Ether fell 0.4% to $1,907.17 Bonds

Australia’s 10-year yield advanced one basis point to 4.92% Commodities

West Texas Intermediate crude fell 0.4% to $74.94 a barrel Spot gold rose 0.3% to $4,258.82 an ounce This story was produced with the assistance of Bloomberg Automation.

©2026 Bloomberg L.P.