Global risk sentiment worsens: Japanese stocks, bonds, and currency all slump; Nasdaq futures fall 1%; Bitcoin drops below the $90,000 mark; gold prices continue to decline.

Global risk sentiment worsens: Japanese stocks, bonds, and currency all slump; Nasdaq futures fall 1%; Bitcoin drops below the $90,000 mark; gold prices continue to decline.

Global markets experienced broad sell-offs on Tuesday, with U.S. stock futures extending losses and cryptocurrencies remaining under pressure. Investors are significantly retreating from risk assets ahead of key events such as Nvidia’s earnings and U.S. employment data, amid ongoing concerns about interest rate prospects and tech stock valuations. In Asia-Pacific markets, Japan suffered a “triple whammy” in stocks, bonds, and currency, with heightened worries about government spending and tech stock sell-offs as well as geopolitical factors dragging down Japan’s market performance.

Core market trends:

Nasdaq 100 futures broadened losses to 1%; Dow futures dropped 0.5%; S&P 500 futures lost 0.7%;

Nikkei 225 fell over 3% at one point; TOPIX declined 2.4%;

MSCI Asia-Pacific index dropped 2% to 221.28 points, breaking below the 50-day moving average for the first time since April;

KOSPI (Korea) fell over 3%;

Spot gold dropped to the $4,000 mark, touching a low of $4,005.03; spot silver fell over 1%;

Bitcoin fell below the $90,000 mark again; Ethereum dropped below $3,000.

In the Asia-Pacific market, Japan suffered a “triple whammy” in stocks, bonds, and currency: The Nikkei 225 and TOPIX indexes both plunged more than 2%.

Meanwhile, the yen and Japanese government bonds also fell: The yen against the U.S. dollar dropped to 155.37, a new low since January; against the euro, it breached 180, the weakest level since the euro was introduced in 1999. Yields on Japanese 10-year, 20-year, and 30-year bonds all rose, with the 10-year yield reaching 1.754%, the highest since June 2008.

Invesco global market strategist Tomo Kinoshita said that concerns over government spending and the tech stock downturn are intertwined, resulting in a triple whammy for Japan’s stock, bond, and FX market. Kinoshita added that intensified geopolitical risks and concerns about the new government’s economic stimulus package might put pressure on foreign investor confidence. In recent months, foreign investors have been the major force driving the Japanese stock market’s rise; if their buying falters, it could further undermine domestic investor confidence and deepen the market downturn.

According to Wallstreetcn, the turmoil in Japan’s stock, bond, and FX markets is driven by growing speculation that the Sanae Takaichi government is about to launch a large economic stimulus plan, which will worsen Japan’s already heavy debt burden and may also cause the Bank of Japan to delay rate hikes. Investors are closely watching a meeting between Sanae Takaichi and Bank of Japan Governor Kazuo Ueda scheduled at 3:30 p.m. Tokyo time for clues on future policy directions.

Analysts point out that this round of selling reflects investors’ ongoing concerns about interest rate prospects and tech stock valuations. Nvidia is set to release its earnings on Wednesday, and the market will use this as a test of whether the high valuations in AI stocks are justified. Then on Thursday, September’s jobs report will provide important clues for Federal Reserve policy.

Vantage Markets analyst Hebe Chen said: “This is the kind of broad and uneasy sell-off that erupts when visibility collapses. The rapid retreat from risk assets, from Bitcoin to high-flying tech stocks, reflects a defensive instinct against ‘unknown unknowns,’ and until visibility improves, volatility remains the baseline.”

Diverging views among Federal Reserve officials on policy paths have heightened market concerns. Fed Vice Chair Philip Jefferson thinks the labor market faces downside risks, but cautions policymakers must proceed carefully. Fed Governor Christopher Waller supports a rate cut in December, citing weak employment data.

Traders currently price in about a 40% chance of a Fed rate cut next month. Pepperstone Group strategist Dilin Wu wrote in a report: “Fed officials continue to express concerns about stubborn inflation, emphasizing that the current information vacuum makes it difficult to assess the real momentum of the economy.”

13:15

U.S. stock futures extended losses; Dow futures fell 0.3%, Nasdaq 100 futures lost 0.6%, and S&P 500 futures dropped 0.5%.

Analysts warn that technical indicators show U.S. stocks may face at least a 10% correction risk. The S&P 500 has fallen 3.2% since its record high on October 28 and has broken below its 50-day moving average after 139 trading days.

John Roque, head of technical analysis at 22V Research, points out that the Nasdaq Composite Index is flashing “ugly” signals. In a universe of about 3,300 constituent stocks, more are hitting 52-week lows than highs, showing market weakness internally and limited prospects for further gains.

Bitcoin fell below $90,000, a 7-month low, deepening a monthlong slide. This decline has erased all of Bitcoin’s gains for 2025, severely hurting the overall sentiment in digital assets. Ethereum fell 0.9% to $2,978.73.

Homin Lee, senior macro strategist at Lombard Odier, said that volatility in the crypto sector is spilling over into other risk assets, and market tensions are deepening as participants reassess the probability of a December Fed rate cut. “These jitters will persist until the September jobs report brings more clarity. Weak labor market data or Nvidia earnings beating expectations could be helpful.”

Risk warning and disclaimerMarkets have risks; investment requires caution. This article does not constitute personal investment advice and does not take into account the particular investment objectives, financial situations, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article fit their unique circumstances. Investment decisions made based on this content are at your own risk.