The broader Asian stock market is trading mixed on Tuesday, with oil prices rising back to $107. India’s Sensex rose 400 points at the opening bell but slumped more than 175 points an hour later. Hong Kong’s Hang Seng also spiked 400 points as the market opened but is now trading close to 150 points in the red. Japan’s Nikkei and South Korea’s Kospi are both in the red and displaying weaker sentiment.

The mixed reaction is keeping retail traders guessing about what could happen next. On one side, oil prices are refusing to bow down, and on the other side, the opportunity to buy low could be missed if a decision is not made quickly. Retail investors are now walking on a thin rope, as the market is not in favor of a rally. Not just oil prices, the recent AI stock slump is also affecting the broader Asian markets. This adds more pressure, as the AI industry is now the market’s only saving grace.

For context, AI stocks plunged on Monday, with leading equities falling more than 5% in value. Stocks such as Micron (NASDAQ: MU), SanDisk (NASDAQ: SNDK), Seagate (NASDAQ: STX), and SK Hynix (NASDAQ: SKHY) all turned red in the day’s session. Even AI stocks in Asian markets are facing heat, with confidence in equities declining. Rising oil prices are leading to weaker markets, with both US and Asian stocks taking the biggest beating.

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US & Asian Stock Markets Under Pressure in September

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Dow Jones fell more than 150 points on Monday, as the AI sector led the losses. “The prospect of a coordinated slowdown in AI development remains uncertain, given intense competition both among US firms and between the US and China,” said Ng Jing Wen, analyst at Mizuho Bank. If oil prices fail to trade below $100, the Asian and US stock markets could weaken further.

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