| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 38852.86 | -216.73 | -0.55% |
| S&P 500 | 5306.04 | 1.32 | 0.02% |
| Nasdaq | 17019.88 | 99.09 | 0.59% |
| VIX | 12.92 | 0.99 | 8.30% |
| Gold | 2360.10 | 3.60 | 0.15% |
| Oil | 80.26 | 0.44 | 0.54% |
US MARKET
After the US holiday, major indexes opened slightly higher but ended mostly lower on Tuesday, as rising government bond yields weighed on equities. Weak Treasury auctions and hawkish Fed commentary pushed the 10-year yield above 4.5%. The Nasdaq managed a gain, driven by a rally in NVIDIA shares.
Focus remains on inflation and central bank policy, with key inflation data due Friday and Fed speeches providing rate cut hints. WTI oil prices rose 3%, influenced by Middle East tensions, though prices remain around $80.
AI enthusiasm boosted the Nasdaq to record highs last week, with NVIDIA leading gains. While AI promises long-term productivity boosts, current benefits are seen mainly in tech leaders. The tech sector leads monthly performance, with most sectors gaining. International markets are also performing well, aided by a weaker US dollar and global growth.
This week’s highlight is the core PCE inflation data on Friday, expected to rise 0.2% month-over-month, maintaining an annual rate of 2.8%. Despite early 2024 inflation stalls, a downtrend suggests potential Fed rate cuts later this year. Rising corporate profits, economic expansion, and possible lower yields create a positive market outlook, though Fed policy and the upcoming presidential election may cause volatility.
The Nasdaq gained 0.6%, while the Dow Jones fell by 0.55% and the S&P 500 edged up by 0.02%
Australian shares are set to open lower, following weak performance in New York after two underwhelming US government bond auctions, with iron ore prices also declining. At 8:15 AEST, S&P/ASX 200 futures were down 46 points or 0.6%.
Investors are awaiting the monthly inflation data, due at 11:30 AEST, with the April CPI expected to dip to 3.4% year-over-year from 3.5% in May.
On the ASX, mining stocks might see activity as iron ore futures dropped 1.2% to $117.90 a tonne in Singapore. ANZ noted scepticism about China’s property support measures boosting demand, with futures declining alongside a sell-off in Chinese property developer shares. Meanwhile, oil prices rebounded from last week’s selloff due to Middle East tensions, with West Texas Intermediate rising 2.7% to above $79 a barrel.
New Zealand dairy company Fonterra reported a 2% increase in third-quarter profit to $1.01 billion and raised its full-year earnings forecast.
Respirator company Fisher & Paykel anticipates a net profit of NZ$310 million to NZ$360 million in fiscal 2025, up from NZ$132.6 million this year. In company news, Macquarie Technology hosts an investor meeting today, and Nufarm shares trade ex-dividend.