| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 39869.38 | -38.62 | -0.10% |
| S&P 500 | 5297.10 | -11.05 | -0.21% |
| Nasdaq | 16698.32 | -44.07 | -0.26% |
| VIX | 12.42 | -0.03 | -0.24% |
| Gold | 2380.90 | -14.00 | -0.58% |
| Oil | 79.35 | 0.72 | 0.92% |
US MARKET
US stocks couldn’t set new records on Thursday, even though the Dow Jones Industrial Average hit 40,000 for the first time.
The Dow ended the day down 0.1%, closing at 39,869 after briefly surpassing 40,000. The Nasdaq Composite dropped 0.3%, and the S&P 500 fell 0.2%, closing just below 5,300 after reaching it on Wednesday.
Comments from Fed officials Loretta Mester, John Williams, and Thomas Barkin about prolonged high interest rates dampened the rally. Mester stated that maintaining a restrictive stance is prudent to understand inflation’s trajectory.
Stocks surged on Wednesday due to data indicating cooling inflation, raising hopes for a Federal Reserve rate cut in September. All major indexes hit record highs.
Investors also moved into bonds, with the 10-year Treasury yield nearing one-month lows at 4.33%. On Thursday, it rose slightly to around 4.38%.
Walmart (WMT) reported better-than-expected quarterly profits, revenue, and same-store sales, boosting its shares by over 7%. Berkshire Hathaway (BKR-B) revealed a $6.7 billion stake in Chubb (CB), lifting Chubb’s shares by 5%.
LOCAL MARKET
The Australian share market saw strong gains following mixed labor force data and positive US inflation news.
The S&P/ASX200 rose 127.6 points, or 1.7%, to 7,881.3, a six-week high. The All Ordinaries gained 129.2 points, or 1.6%, to 8,150.1.
Australia’s unemployment rate increased to 4.1% in April from 3.9% in March, with 38,000 new jobs added but 30,000 more unemployed. Despite this, expectations for rate cuts next year remain cautious.
In the US, core inflation fell to 3.6% in April, suggesting a trend of disinflation that could allow the Fed to cut rates later this year.
Most ASX sectors rose, except energy, which dipped 0.3%. Property was the biggest gainer, up 3.5%. In mining, BHP rose 1.0%, Fortescue gained 2.2%, and Rio Tinto increased 0.7%. The big four banks also rose, with CBA up 1.9%, ANZ 2.1%, NAB 2.4%, and Westpac 1.4%.
Whitehaven Coal fell 1.5% after a court ruling, while Graincorp rose 0.9% despite a 75% drop in half-year net profit. Incitec Pivot climbed 5.3% after reporting better-than-expected earnings and announcing the sale of its fertilizer business.
The Australian dollar was at 66.78 US cents, up from 66.44 US cents.
Other markets: NZX 50 up 1.72% to 11,728.06, Nikkei up 1.37% to 38,920.26.