US Market
| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 37903.29 | 87.37 | 0.23% |
| S&P 500 | 5018.39 | -17.30 | -0.34% |
| Nasdaq | 15605.48 | -52.34 | -0.33% |
| VIX | 15.39 | -0.26 | -1.66% |
| Gold | 2329.50 | 19.30 | 0.84% |
| Oil | 79.11 | 0.11 | 0.14% |
US MARKET
US stocks closed April on a low note, with the S&P 500 dropping 1.6%, the Nasdaq Composite losing 2%, and the Dow Jones Industrial Average shedding 570 points, or 1.5%.
All 11 S&P 500 sectors ended the day down, with the index falling 4.2% in April, its worst since September, despite a strong first-quarter showing. The Nasdaq and Dow also saw declines of 4.4% and 5%, respectively, for the month.
Fresh data on worker compensation from the Labor Department’s employment-cost index showed a rise of 1.2% in the first quarter and 4.2% from a year earlier, indicating ongoing wage pressure. This data has reignited inflation concerns, as consumer prices have exceeded expectations for three consecutive months, dampening hopes for near-term interest-rate cuts.
Investors are now skeptical about the possibility of any rate cuts in 2024, compared to earlier expectations of up to six cuts. The Federal Reserve is expected to maintain its benchmark federal-funds rate at its highest level in over two decades at its policy meeting, with April job data expected to provide further insight into the labor market.
Meanwhile, the benchmark 10-year Treasury yield rose to 4.683%, marking the largest monthly increase since September 2022, leading to a decline in bond prices.
Despite market volatility, earnings season has been a bright spot, with S&P 500 companies reporting a 3.9% growth in first-quarter earnings. Amazon.com exceeded expectations with its profits, while Apple’s results are awaited.
Notable stock movements include Eli Lilly rising 6% after increasing its full-year profit outlook, 3M climbing 4.7% following its decision to scrap its quarterly dividend, and GE HealthCare Technologies falling 14% after disappointing earnings, marking its worst single-day performance since its 2022 stock-market debut.
LOCAL MARKET
The Australian stock market took a hit across the board following stronger-than-expected US wage data, which fueled concerns about the US Federal Reserve’s stance.
The S&P/ASX200 index closed down 94.2 points, or 1.23%, at 7,569.9, while the broader All Ordinaries dropped 100.1 points, or 1.26%, to 7,831.9. US employment costs surged by 1.2% last quarter, raising worries about inflation and potentially influencing the Fed’s upcoming decision on interest rates, possibly delaying rate cuts.
The futures market now predicts a US rate cut may not occur until November, contrasting with earlier expectations of a June cut. All ASX sectors declined by at least 0.5%, with energy stocks leading the drop as Brent crude fell below $86 a barrel for the first time since late March.
Uranium miners saw gains following reports of a potential ban on Russian uranium imports by the Biden administration. However, only 16 out of 200 companies in the ASX200 ended positively, with gold miners particularly affected by the easing expectations of rate cuts.
The US dollar rose to its highest level since November against various currencies, including the Australian dollar, which hit a one-week low at 64.80 US cents. ON THE ASX, the S&P/ASX200 rose 26.7 points, or 0.35%, to 7,664.1, while the All Ordinaries increased 25.4 points, or 0.32%, to 7,932.0.