World shares mostly lower after Wall Street’s strong start to the year cools

Global markets retreated Thursday as the new year’s rally on Wall Street lost momentum, with technology stocks leading the decline in Asian trading.

European markets opened lower, with Britain’s FTSE 100 falling 0.3% to 10,015.45, Paris’s CAC 40 declining 0.2% to 8,217.55, and Germany’s DAX dropping 0.1% to 25,097.16. U.S. futures pointed to a lower open, with S&P 500 futures down more than 0.2% and Dow Jones Industrial Average futures slipping 0.3%.

In Asia, Japan’s Nikkei 225 plunged 1.6% to 51,117.26, with technology shares bearing the brunt of selling pressure. SoftBank Group, a major tech investor, tumbled 7.6%, while semiconductor equipment manufacturer Tokyo Electron fell 4% amid the broader tech sector weakness.

Hong Kong’s Hang Seng index declined 1.2% to 26,149.31, though Chinese artificial intelligence company Zhipu delivered a strong trading debut, with shares rising approximately 15% above their initial offer price. The performance highlighted continued investor interest in AI companies despite the broader market pullback. The Shanghai Composite index edged down nearly 0.1% to 4,082.98.

South Korea’s Kospi, which had reached record highs earlier this week, remained virtually unchanged, adding less than 0.1% to close at 4,552.37. Australia’s S&P/ASX 200 was one of the few gainers, rising 0.3% to 8,720.80, while Taiwan’s Taiex slipped more than 0.2%.

The market pullback follows Wednesday’s session on Wall Street, where the S&P 500 retreated 0.3% from its all-time high to close at 6,920.93. The Dow Jones Industrial Average dropped 0.9% to 48,996.08, while the technology-heavy Nasdaq composite managed a modest gain of 0.2% to 23,584.27.

Comments from President Donald Trump rattled certain sectors, particularly homebuilders. Trump indicated on social media that his administration would move to block large institutional investors from purchasing single-family homes, framing it as an effort to address the country’s housing affordability crisis. The announcement sent homebuilders’ stocks tumbling, with D.R. Horton falling 3.6% and PulteGroup dropping 3.2%.

In media industry developments, Warner Bros. Discovery rejected a revised buyout offer from Paramount, reaffirming its commitment to Netflix’s proposal. Warner Bros. Discovery shares rose 0.4% and Netflix added 0.1%, while Paramount Skydance fell 1%.

Oil prices edged higher Thursday following the U.S. government’s seizure of two oil tankers, part of the Trump administration’s efforts to assert control over Venezuelan crude. The move came after Trump’s earlier comments that Venezuela would provide 30 to 50 million barrels of oil to the United States. Benchmark U.S. crude increased 0.2% to $56.22 per barrel, while Brent crude, the international standard, rose 0.3% to $60.22 per barrel.

The oil market has experienced heightened volatility this week as investors evaluate risks following the U.S. government’s decision to recognize Venezuela’s opposition leader as the country’s legitimate president, effectively ousting Nicolás Maduro. Venezuela possesses some of the world’s largest oil reserves, making political developments there significant for global energy markets.

In the bond market, U.S. Treasury yields fluctuated after mixed economic reports. The yield on the 10-year Treasury fell to 4.14% from 4.18%, while the two-year yield remained steady at 3.46%.

Economic indicators painted a complex picture of the U.S. economy. The services sector showed stronger-than-expected growth in December, while job market reports delivered mixed signals. One report indicated a significant decrease in job openings for November, while another showed businesses added 41,000 jobs in December. Investors are now looking ahead to Friday’s comprehensive monthly employment report from the U.S. Labor Department, which should provide greater clarity on labor market conditions.

In currency markets, the dollar weakened against the Japanese yen, falling to 156.53 yen from 156.77 yen. The euro strengthened slightly against the dollar, rising to $1.1682 from $1.1677.