| Name | Daily Close | Daily Change | Daily Change (%) | |
|---|---|---|---|---|
| Dow | 44,544.66 | -337.47 | -0.75% | |
| S&P 500 | 6,040.53 | -30.64 | -0.50% | |
| Nasdaq | 19,627.44 | -54.31 | -0.28% | |
| VIX | 16.43 | 0.59 | 3.72% | |
| Gold | 2,831.50 | -3.5 | -0.12% | |
| Oil | 73.81 | 1.28 | 1.76% |
US MARKET
The S&P 500 and Nasdaq 100 rose 0.5% Thursday in choppy trading. Apple shares fell during the session but rose in post-market trading following results that showed revenues exceeding estimates.
Earnings for mega-cap tech companies face heightened scrutiny given the heavy selling in stocks associated with artificial intelligence earlier this month. Nvidia shares rose Thursday but remained on track for the worst week since September.The recent market activity has been marked by significant volatility, largely driven by President Trump’s announcement of 25% tariffs on Mexico and Canada, which had a notable impact on their currencies. This geopolitical move introduced uncertainty, causing ripples across various sectors. Despite the broader market’s turbulence, the tech sector, particularly Apple Inc., experienced fluctuations that significantly influenced the Nasdaq 100. Interestingly, small-cap stocks managed to outperform, suggesting a divergence in investor sentiment and risk appetite. The S&P 500’s equal-weighted version climbed 1%, indicating a potential broadening of the bull market. This suggests that the rally is not just confined to a few large-cap stocks but is more widespread, which could be a positive sign for the market’s overall health.
The US economy expanded at a solid pace at the end of 2024, despite drags from a strike at Boeing Co. and much leaner inventory investment. Consumer spending, which comprises the largest share of economic activity, advanced at a 4.2% pace — the first time since late 2021 that outlays have exceeded 3% in consecutive quarters. The acceleration was the biggest since early 2023 and was led by a pickup in motor vehicle sales. Consumer spending emerged as a bright spot, advancing at a robust 4.2% pace. This surge in consumer activity provided a much-needed boost to equities, underscoring the critical role of consumer confidence and spending in driving economic growth.
AUSTRALIAN EQUITY MARKET WRAP
Australian shares hit a record high on Thursday due to expectations of an imminent interest rate cut by the Reserve Bank. The S&P/ASX 200 rose 0.6% to 8493.7 points, with all 11 sectors higher, led by energy and consumer discretionary.
Key highlights include:
-Federal Reserve holding the funds rate between 4.25% and 4.5%
-Positive sentiment despite Fed Chairman Powell’s cautious tone
-Major gains for stocks like BHP, Woodside, CSL, and major banks
-Australian dollar fell to US62.22¢
-Karoon Energy gained 7.2% due to a share buyback announcement
-Credit Corp Group had the largest loss at 12.6%
In corporate news, Magellan Financial Group fell 8.3% after the departure of its veteran infrastructure boss, Gerald Stack.