| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 4000.90 | 247.15 | 0.62% |
| S&P 500 | 5615.35 | 30.81 | 0.55% |
| Nasdaq | 18398.45 | 115.04 | 0.63% |
| VIX | 12.46 | -0.46 | -3.56% |
| Gold | 2413.60 | -7.10 | -0.29% |
| Oil | 82.51 | 0.30 | 0.36% |
US MARKET
The Dow and broader stock market rallied on Friday, buoyed by bets on upcoming rate cuts as inflation cooled and producer prices saw a modest rise. The Dow Jones Industrial Average closed above 40,000 for the first time since mid-May, climbing over 200 points. Meanwhile, the small-cap Russell 2000 continued its ascent, jumping 1% following a 4% surge on Thursday.
All sectors of the S&P 500 gained, with nearly every stock in the index posting advances. This broad market rally, underpinned by favorable economic data, suggests a potential rate cut in September, with the CME FedWatch Tool indicating nearly 90% odds of this happening.
US indexes closed higher: the S&P 500 rose 0.6%, the Nasdaq also up by 0.6%. In the bond market, yields fell as investors adjusted to the optimistic economic outlook, with the two-year Treasury note dropping about 14 basis points over the week.
Amid these market movements, commodities like oil and gold saw slight declines, while Bitcoin edged up by 0.5%.
LOCAL MARKET
The Australian share market reached a new high, driven by a significant drop in U.S. inflation which fueled expectations for Federal Reserve rate cuts.
The S&P/ASX200 index climbed 0.88% to 7,959.3, while the All Ordinaries increased 0.89% to 8,206.1.
This surge followed U.S. inflation falling to 3.0% year-on-year in June, leading to speculation about multiple rate cuts in the upcoming months.
Sector gains were widespread, with property stocks leading. The Australian dollar also saw a slight rise against the U.S. dollar.