| Name | Price | Changes | % Change |
|---|---|---|---|
| Dow | 44484.42 | -10.52 | -0.02% |
| S&P 500 | 6227.42 | 29.41 | 0.47% |
| Nasdaq | 20393.13 | 190.24 | 0.94% |
| VIX | 16.64 | -0.19 | -1.13% |
| Gold | 3356.3 | -3.4 | -0.10% |
| Oil | 67.26 | -0.19 | -0.28% |
OVERVIEW OF THE US MARKET
Bullish sentiment propelled US stocks higher on Tuesday, fueled by optimism over a potential Vietnam trade deal and balanced remarks from Federal Reserve officials hinting at future rate cuts. Treasury yields edged up slightly, while the Australian dollar held steady against a backdrop of global yield stability.
The S&P 500 climbed 0.47% to 6,227.42, and the Nasdaq Composite surged 0.94% to 20,393.13, both marking new all-time highs. The gains reflect a robust rebound from earlier tariff-related volatility, with tech stocks leading the charge.
The US stock market saw significant activity on Tuesday, with BigBear.ai Holdings Inc. (BBAI) leading the gainers, surging 13.68% to close at $7.56 on an extraordinary volume of 374.6 million shares. The spike, driven by heightened interest in AI defense contracts, reflects optimism following recent leadership changes and government spending initiatives. NVIDIA Corp. (NVDA) also gained 2.58% to $157.25, bolstered by its dominance in AI chip demand, with 171.1 million shares traded, underscoring its market leadership.
Intel Corp. (INTC) bucked the trend, declining 4.25% to $21.88 on 138.2 million shares, as concerns over guidance and competition weighed on sentiment. Lucid Group Inc. (LCID) edged up 0.99% to $2.05 with 122.6 million shares, showing modest EV sector resilience, while Ford Motor Co. (F) rose 3.70% to $11.77 on 122.3 million shares, supported by positive production updates. The high volume suggests active repositioning, possibly tied to trade negotiation updates and Federal Reserve rate cut speculation, with investors awaiting Friday’s employment data.
Federal Reserve Vice Chair Michelle Bowman’s comments late Tuesday supported a potential July rate cut if inflation stays contained, aligning with Trump’s push for looser policy. This contrasts with Chair Jerome Powell’s cautious stance from last week, keeping markets on edge as they await further data, including Friday’s employment report.
OVERVIEW OF THE AUSTRALIAN MARKET
The Australian share market closed higher on Tuesday, with the S&P/ASX 200 rallying 56 points (+0.66%) to 8,597.75, topping its 11 June record to mark its sixth record high of the year. The All Ordinaries gained 0.65% to 8,828.69, reflecting broad-based strength as ten out of eleven sectors finished in positive territory.
The record move was fueled by a significant bounce in Materials (+1.83%), which had been trading near two-month lows just seven sessions ago. Notable gainers included South32 (+5.0%), Fortescue (+3.8%), Rio Tinto (+2.0%), and BHP (+1.7%), driven by a rebound in iron ore prices. Real Estate (+1.77%) and Telcos (+1.08%) trailed the resource sector, with Scentre Group (+2.7%) breaking out to September 2024 highs, bolstered by growing rate cut expectations.
The tech sector struggled, declining 0.73%, which aligns with a weak lead from Wall Street where megacap tech stocks finished broadly lower and the Nasdaq slipped 0.82%. The market’s upward movement was supported by optimism over potential trade talks ahead of the July 9 deadline and an imminent Reserve Bank of Australia (RBA) rate cut, widely anticipated at the upcoming July 7–8 meeting.