| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 38712.21 | -35.21 | -0.09% |
| S&P 500 | 5421.03 | 45.71 | 0.85% |
| Nasdaq | 17608.44 | 264.89 | 1.53% |
| VIX | 12.04 | -0.81 | -6.30% |
| Gold | 2338.50 | -16.50 | -0.69% |
| Oil | 78.36 | -0.14 | -0.17% |
US MARKET
The S&P 500 and Nasdaq Composite hit new records after inflation data spurred traders to bet on Federal Reserve rate cuts this year.
The S&P 500 rose 0.9%, up 14% for the year, while the Nasdaq gained 1.5%. The Dow Jones fell slightly by 0.1%, losing 35 points. The 10-year Treasury yield, a borrowing cost benchmark, dropped. Data showed May inflation cooling, with the consumer-price index up 3.3% from last year, slightly below economists’ expectations.
“It really couldn’t be any better,” said Gina Bolvin, president of Bolvin Wealth Management Group. The Fed held interest rates steady, hinting at one rate cut this year. Traders anticipated two cuts in 2024, with a 61% chance of at least two cuts this year.
“Inflation moving toward the Fed’s 2% target is crucial,” said Quincy Krosby, chief global strategist for LPL Financial.
Lower rates boosted smaller companies’ shares, with the Russell 2000 index up 1.6%. Building products stocks also rallied on expectations of increased home construction and sales. The S&P 500’s tech sector led gains, with Apple up 2.9%. Oracle shares soared 13% after announcing new AI deals.
Traders will watch for more inflation data with Thursday’s producer price measure release.
Australian shares are set to rise 0.7%, mirroring gains in New York, after US May CPI data showed cooling inflation, boosting expectations of Federal Reserve rate cuts by September.
US markets trimmed some gains after Fed chairman Jerome Powell stated more progress on inflation is needed before cutting rates. The S&P 500 rose 0.9% to 5421.03, marking its first close above 5400 points in the current 20-month bull market. The Nasdaq Composite gained 1.6%, also reaching a new closing high.
In Australia, May jobs data expected at 11:30 am AEST may show a 0.1% drop in the jobless rate to 4%. NAB notes that last month’s unemployment figures included many waiting to start new jobs, potentially pushing the rate down to 3.9%.
The US 10-year note yield dropped after the CPI report but recovered as Powell spoke. “Progress toward the Fed’s 2% target is undeniable, but the debate is on the timeframe,” said LPL Financial chief economist Jeffrey Roach.
Stocks in focus include Apple, surging for a second session, and Nvidia, rallying on AI enthusiasm. Apple’s surge made it the world’s most valuable publicly traded company, overtaking Microsoft.
In other news, Health Minister Mark Butler launched an urgent review of the $22 billion private hospital system.