Asian shares mostly declined in cautious trading Tuesday ahead of earnings reports in the region and elsewhere, as Wall Street’s long, record-breaking rally ran out of steam.

Japan's benchmark Nikkei 225 dropped 1.4% to 38,418.72. Australia's S&P/ASX 200 fell 1.7% to 8,205.70, while South Korea's Kospi slipped 1.3% to 2,570.48.

Hong Kong's Hang Seng lost was flat at 20,486.56, while the Shanghai Composite rose 0.4% to 3,280.04 following a cut to interest rates that took effect on Monday.

“The next two weeks are set to be a wild ride. Volatility has surged across stocks, bonds, and currencies as investors brace for a perfect storm of risks: a hotly contested U.S. election, critical interest-rate decisions in both the U.S. and Europe, the looming threat of a wider Middle East conflict, and the ever-present pressure of quarterly earnings,” Stephen Innes, managing partner at SPI Asset Management said in a commentary.

On Wall Street, the S&P 500 slipped 0.2% to 5,853.98, coming off a sixth straight winning week, its longest such streak of the year. The Dow Jones Industrial Average dropped 0.8% from its own record that was likewise set on Friday, to 42,931.60. The Nasdaq composite rose 0.3% to 18,540.00.

Real-estate stocks fell to the sharpest loss among the 11 sectors that make up the S&P 500 index, while homebuilders Lennar and D.R. Horton both fell at least 4.3%. Home Depot’s 2.1% drop was one of the heaviest weights on the S&P 500.

The declines mean at least a pause in Wall Street’s rally to records, which was built in large part on optimism that the U.S. economy can make a perfect escape from the worst inflation in generations, one that ends without a painful recession that many investors had worried could be inevitable.

With the Federal Reserve now cutting interest rates to keep the economy humming, optimists hope stocks can rise even further. But critics are warning stock prices look too expensive given they’ve climbed much faster than corporate profits.

That puts pressure on companies to deliver growth in profits to justify their stock prices, and more than 100 companies in the S&P 500 are scheduled to give details this week about their performances during the summer. That includes such heavyweights as AT&T, Coca-Cola, IBM, General Motors and Tesla.

Tesla slipped 0.8% ahead of its report. Its stock has been shaky recently, including a tumble after an update on its highly anticipated robotaxi included fewer details than investors were hoping for.

Boeing is reporting its latest results on Wednesday. It rose 3.1% after reaching an agreement with the union representing its striking machinists on a contract proposal. The union’s members could vote Wednesday on the deal, which could end a costly walkout that has crippled production of airplanes for more than a month.

Trump Media & Technology Group rose 5.8% to top $31, continuing its strong run since it briefly dipped below $12 last month. The company behind former President Donald Trump’s Truth Social platform is still losing money, but its stock often moves more with his perceived chances of reelection than anything else.

The Bank of Canada will also announce its latest decision on interest rates Wednesday, where it could cut by half a percentage point.

In energy trading, benchmark U.S. crude lost 21 cents to $70.35 a barrel. Brent crude, the international standard, fell 36 cents to $73.93 a barrel.

In currency trading, the U.S. dollar rose to 150.79 Japanese yen from 150.69 yen. The euro inched up to $1.0822 from $1.0819.