| Daily Close | Daily Change | Daily Change (%) | |
|---|---|---|---|
| Dow | 38747.42 | -120.62 | -0.31% |
| S&P 500 | 5375.32 | 14.53 | 0.27% |
| Nasdaq | 17343.55 | 151.02 | 0.88% |
| VIX | 12.85 | 0.11 | 0.86% |
| Gold | 2332.40 | 5.80 | 0.25% |
| Oil | 78.18 | 0.28 | 0.36% |
US MARKET
Stock markets slipped as investors prepared for the Fed’s June policy meeting. The FOMC meeting, ending Wednesday, will determine future interest rates, while the May CPI report, also releasing Wednesday, will offer further rate insight.
US stocks dropped on Tuesday as traders readied for the Federal Reserve’s June meeting. The two-day event will conclude with a policy announcement and commentary from Chairman Jerome Powell on Wednesday afternoon. Futures market data shows investors expect interest rates to remain unchanged.
Upcoming inflation data on Wednesday should help determine interest rates for the coming months. If the May consumer price index report is cooler than expected, odds of a September rate cut could rise. Markets are divided on whether one or two rate cuts are possible this year, especially after last week’s hot jobs data.
Apple stock recovered Monday’s losses, rising 2% after the iPhone maker unveiled its AI game plan. Analysts expect a big upgrade cycle as consumers adopt the latest AI offerings.
Other notable points include concerns over the S&P falling if the Fed fails to cut rates this year, and America’s internal dysfunction being a significant driver of de-dollarization, according to think tank experts. The inverted yield curve has been flashing for 20 months, indicating a possible recession, says its inventor. One economist predicts the ‘bubble of all bubbles’ will burst in 2025.
In commodities, West Texas Intermediate crude oil slipped 0.06% to $77.53 a barrel, while Brent crude inched up by 0.05% to $81.83 a barrel. Gold edged higher by 0.19% to $2,315.45 per ounce. The 10-year Treasury yield dipped one basis point to 4.453%. Bitcoin slumped 3.4% to $66,922.
Australian shares are expected to extend losses on Wednesday morning after a mixed performance on Wall Street. ASX futures were down 36 points (0.5%) to 7,727 around 8am AEST. The local market saw its biggest drop in six weeks on Tuesday, falling 1.3% as traders anticipated the US Federal Reserve’s stance on rate cuts.
Overnight in New York, banking stocks dragged the Dow Jones lower, while the Nasdaq and S&P 500 rose, boosted by a 7.3% surge in Apple due to optimism about its AI plans. Apple closed at $US207.15, with a market cap of $US3.18 trillion.
A successful US government bond sale increased optimism about future rate cuts. Investors are awaiting the May US CPI report and the Fed’s policy decision. Tom Lee of Fundstrat Global predicts a market rally, saying, “We believe Wednesday will mark a positive turning point for stocks.”
Super Retail appointed Judith Swales; Fonterra’s global markets CEO, as chairwoman, succeeding Sally Pitkin in 2024. The review of SkyCity Adelaide has resumed following a $67 million fine for breaches of anti-money laundering laws. The findings are due by December 31.