Asian Stocks Set to Fall as US Chipmakers Slide Pre-Earnings

· Politics · United States

Asian stocks were set to slip, tracking losses on Wall Street after weakness in US chipmakers dented sentiment ahead of a pivotal earnings season and inflation data that may shape the Federal Reserve's next move. US stocks wavered on the slowest trading day of 2026. BlackRock's research unit turned more bullish on short-term US Treasuries, unwinding a "mainstay" underweight stance held for most of the past six years, as yields climbed to the highest levels in more than two decades. Cleveland Fed President Hammack said higher rates could be needed to prevent an "inflationary mindset" from taking hold.

Why it matters：Weakening chip stocks and rising bond yields test a rally that hinges on earnings and the Fed's next rate decision.

Key points

  • Asian stocks were set to fall after US chipmaker weakness
  • BlackRock turned bullish on short-term US Treasuries as yields hit multi-decade highs
  • Cleveland Fed's Hammack said higher rates may be needed to curb an 'inflationary mindset'

Sources (original reporting)

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