ASX expected to drop as US stocks show uncertainty

US stocks showed mixed results in trading today. The S&P 500 dropped by 0.1%, while the Dow Jones climbed 0.2%. The Nasdaq composite fell by 0.3%. This lack of movement reflects ongoing uncertainty about the US economy, which appears stable for now. Futures indicate that the Australian stock market may open lower. Predictions suggest a drop of 20 points, or 0.3%. The Australian dollar has also decreased in value, falling to 62.95 US cents. Recent reports suggest that fewer workers filed unemployment claims last week than expected. This points to a job market that is stable, albeit slow. Home sales data from last month also showed surprising strength, boosting investor confidence. Despite some positive signs, Federal Reserve Chair Jerome Powell noted high uncertainty in the economy, mainly due to ongoing trade tensions. Accenture, a consulting firm, saw its shares drop by 7.2% after concerns about reduced government spending impacted investors, even though it reported better-than-expected earnings. Market experts suggest that stock prices have risen too quickly, making them look overvalued. While some predict a potential recovery in stock prices soon, others warn that economic growth might slow in the second half of the year. This could lead to a situation known as “stagflation,” which poses challenges for economic management. In corporate news, Darden Restaurants saw its stock rise by 5.1% after meeting profit expectations. Discount retailer Five Below gained 7% following strong quarterly results. International markets showed declines, with London's FTSE 100 down by 0.1% and Germany's DAX dropping by 1.2%. Hong Kong's Hang Seng index suffered the most, falling 2.2% amid pressure on technology stocks. In the bond market, the yield on the 10-year Treasury note fell slightly to 4.23%.