| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 39118.86 | 45.20 | -0.12% |
| S&P 500 | 5460.48 | 22.39 | -0.41% |
| Nasdaq | 17732.60 | -126.08 | -0.71% |
| VIX | 12.44 | 0.20 | 1.63% |
| Gold | 2334.70 | -4.90 | -0.21% |
| Oil | 81.64 | 0.10 | 0.12% |
US MARKET
US indexes ended lower despite positive PCE data, showing both headline and core readings at 2.6% year-to-year.
The stock market closed the first half of 2024 strongly, with the S&P 500 up nearly 15%. However, indexes slid on Friday after reaching new records. The personal consumption expenditures price index, favored by the Federal Reserve, hit its lowest reading in three years. Personal spending also picked up month-to-month.
Jeffrey Roach, LPL Financial chief economist, said, “The soft inflation data will build the case that the Fed can start cutting rates in the coming months.” Despite no change in May, investors expect interest rate cuts this year.
At the 4 p.m. closing bell on Friday, the S&P 500 was at 5,460.48, down 0.41%, the Dow was at 39,118.86, down 0.12%, and the Nasdaq was at 17,732.60, down 0.71%. The S&P 500 gained 14.1% year-to-year, outdone by the Nasdaq’s 16.6% increase.
David Morrison, Trade Nation’s senior market analyst, noted concerns about market weakness as the Dow added only 4% and the Russell 1%.
Other notable events include Warren Buffett’s plan to put his $130 billion into a charitable fund for his children once he dies. JPMorgan says the US economy is in a ‘selective recession’ impacting lower-income consumers.
In commodities, bonds, and crypto, West Texas Intermediate crude dropped 0.53% to $81.3 a barrel. Brent crude ticked 0.18% lower to $84.77 a barrel. Gold slipped 0.12% to $2,326 per ounce. The 10-year Treasury yield jumped 6 basis points to 4.349%. Bitcoin stayed flat at $60,809.21.
LOCAL MARKET
The local share market ended the financial year barely in the green. The S&P/ASX200 rose 7.9 points, or 0.1%, to 7,767.5, while the All Ordinaries gained 11 points, or 0.14%, to 8,013.8.
For the week, the ASX200 lost 0.4%, finishing June up 0.9%. It closed the financial year up 7.8%, outperforming savings accounts but underperforming other global indexes.
Caution ahead of US inflation data and uncertainty about Joe Biden’s political future influenced trading. End-of-quarter repositioning may have also played a role.
“Australian shares did well but lagged due to China worries and rate hike impacts on households,” wrote AMP chief economist Shane Oliver.
Five of the ASX’s 11 sectors gained on Friday. Suncorp rose 3.6% to $17.41, while ANZ dipped 0.2% to $28.24. CBA, NAB, and Westpac closed higher. IAG surged 7.2% to $7.14 after announcing reinsurance protection.
The mining sector fell 1%, with Rio Tinto down 2.1%, Fortescue down 1.2%, and BHP down 1.1%. Newmont added 1.7%, Evolution grew 1.5%, and De Grey Mining climbed 4.6%.
In property, Mirvac rose 3.3% to $1.87 after completing $1 billion in asset sales.
The Australian dollar was at 66.29 US cents, down from 66.67 US cents on Thursday.
The NZX 50 lost 117.59 points, or 1%, to 11,717.43, while the Nikkei gained 241.54 points, or 0.61%, to close at 39,583.08.