**Good Morning! Here’s What to Know Before the ASX Opens – Wednesday, January 21, 2026**

Get ready for a rough start to your trading day. As of 7am Sydney time, ASX futures are pointing down 0.65%, setting the stage for a potential sell-off when markets open.

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**Wall Street Took a Hit Overnight**

The major US stock indexes had a tough night:

– **Dow Jones** dropped 1.84%
– **S&P 500** fell 2.02%
– **Nasdaq** tumbled 2.25%

When the Nasdaq leads the drop, it’s usually a sign that investors are running from riskier stocks — especially tech.

So, what triggered this? Surprisingly, it all started in Japan. Bond yields there jumped sharply overnight. That caused a chain reaction — US Treasury yields rose, global bond yields climbed, and investors suddenly saw less value in future earnings. In simple terms: higher yields make stocks, especially growth stocks, look less attractive.

Big tech names took a hit:
– **Nvidia** dropped about 3%
– **Apple** came under pressure after Citi lowered its price target due to rising memory chip costs squeezing profit margins
– **Netflix** fell even after making a bold move to go all-cash in its bid for Warner Bros.

This wasn’t just about tech either. Ten out of eleven sectors in the S&P 500 were in the red. The only one that held up? Consumer staples — because no matter what happens in the markets, people still buy toothpaste and baked beans.

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**Crypto Follows the Drop**

Cryptocurrencies also took a hit as market anxiety spread:

– **Bitcoin** dipped below US$90,000 for the first time in over a week
– **Ether** sank more than 7%
– **Solana** dropped over 5%
– **Coinbase** shares fell more than 5%

When macroeconomic pressure hits, crypto often reacts the same way: it drops fast.

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**Opportunity or Warning?**

Some analysts are urging calm. Remember 2022? Bond yields soared back then too, and growth stocks got hammered.

Well-known tech analyst Dan Ives says this could be a **buying opportunity**, reminding investors that the AI trend is still just beginning.

Market watcher Tom Essaye agrees — but with caution. He says dips like this can be buying chances, but we may need to see another 3–5% drop before jumping back in.

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**What’s Happening at Davos?**

At the World Economic Forum in Davos, global leaders are trying to soothe nerves:

– **China’s Vice Premier He Lifeng** said China wants to be both “the world’s factory” and “the world’s market” — signaling openness to global trade.
– **US Treasury Secretary Scott Bessent** said recent tariff fears were overblown and urged everyone to stay calm and avoid escalating tensions.

Investors are closely watching Davos for any surprises or major shifts in global economic policy.

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**What to Watch Today on the ASX**

Today is shaping up to be busy and possibly volatile for local markets.

A number of big resource companies are reporting results:

– **Rio Tinto**
– **Beach Energy**
– **Evolution Mining**
– **Lynas Rare Earths**
– **Paladin Energy**
– **Yancoal**

These companies cover key areas like iron ore, uranium, rare earths, and energy — all sectors that are very sensitive to what’s happening with China and global currency moves.

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**Commodity, Forex & Crypto Snapshot**

Keep an eye on these markets throughout the day as they react to global events and earnings reports.

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**Other Market News You Should Know**

– Many investors believe the **resources sector bull run will continue into 2026**, after seeing strong returns recently.
– Japanese giant **Sumitomo** is eyeing Strategic Energy Resources (ASX:SER) for gold opportunities.
– A volatile healthcare earnings season is approaching — brokers are warning of possible turbulence.
– **Trading Halt:** 29Metals Limited (ASX:29M) has paused trading due to a capital raise.

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Stay sharp today — between global bond moves, crypto drops, and major earnings reports, markets could swing fast.