| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 39908.00 | 349.89 | 0.88% |
| S&P 500 | 5308.15 | 61.47 | 1.17% |
| Nasdaq | 16742.39 | 231.21 | 1.40% |
| VIX | 12.45 | -0.97 | -7.23% |
| Gold | 2393.00 | 1.90 | -0.08% |
| Oil | 78.88 | 0.25 | 0.32% |
US MARKET
On Wednesday, the S&P 500, Nasdaq 100, and Dow Jones Industrial Average all reached unprecedented highs, propelled by an encouraging inflation report that elevated investor optimism. Specifically, the Nasdaq 100 has surged 9.7% from its April lows, while the S&P 500 has appreciated by 7.2%. The session concluded with the S&P 500 at 5,308 points and the Nasdaq 100 at 18,595 points, marking a significant day in the financial markets.
The Technology Select Sector SPDR Fund advanced by 2.2%, and the Real Estate Select Sector SPDR Fund increased by 1.7%. These sectors benefited from broader market trends and investor confidence in growth prospects.
Super Micro Computer Inc saw an exceptional rise of 15.8%, largely driven by the day’s robust rally in Bitcoin, which itself increased by over 7%. D.R. Horton, Inc and Vistra Corp also posted substantial gains of 6.5% and 6%, respectively, benefiting from the favourable market conditions.
The blue-chip stocks weren’t left behind in the rally. Salesforce, Inc., Amgen Inc., and The Home Depot, Inc. recorded gains of 3.9%, 2.5%, and 2.4%, respectively. These gains underscore the robustness of well-established companies in navigating market dynamics effectively.
On the trading front, GameStop and AMC witnessed sharp price movements, reflecting a high-stakes battle between short sellers and bullish investors. These movements underscored the ongoing volatility and speculative interest in these stocks, which have been at the centre of significant trading controversies in recent times.
LOCAL MARKET
Miners led the Australian share market higher after the federal budget introduced billions in tax credits for the critical minerals industry. On Wednesday, the S&P/ASX200 rose 33.8 points, or 0.35%, to 7,753.7, while the All Ordinaries gained 25.2 points, or 0.32%, to 8,020.9.
The mining sector jumped 1.1% following the budget announcement of $7 billion in tax credits for critical minerals under Anthony Albanese’s A Future Made in Australia plan. BHP rose 2.2% to $44.09, Fortescue gained 0.9% to $26.03, and Rio Tinto added 1.1% to $129.48.
The budget also included income tax cuts, rental assistance, and energy bill rebates, which are expected to positively impact retail stocks, according to Grant Mundell from Equity Trustees Asset Management.
Aristocrat Leisure climbed 2.0%, Premier Investments grew 2.4%, and Adairs rose 1.3%. IDP Education surged 7.1% after five days of losses, possibly due to relief over the foreign student visa crackdown.
Pathology clinics faced declines due to budget promises to reform the sector, despite the inclusion of Medicare funding indexation for certain services. Sonic Healthcare fell 3.4%, Healius retreated 6%, and Australian Clinical Labs dropped 3.9%. The Big Four banks were mostly down, with ANZ losing 1.2%, Westpac dipping 0.9%, and NAB dropping 0.7%. CBA was the exception, adding 0.5%.
Traders are anticipating April’s US consumer price index figures, set for release on Wednesday night Australian time. US wholesale inflation rose more than expected last month, but Fed chairman Jerome Powell suggested an interest rate hike was unlikely.
Wages in Australia grew 0.8% in the March quarter, slightly below expectations, supporting the Reserve Bank’s view that wage pressure has peaked. However, Betashares chief economist David Bassanese labelled the federal budget “surprisingly expansionist,” predicting a 40% chance of another RBA rate hike, up from 10%.
The Australian dollar was at 66.42 US cents, up from 66.05 US cents on Tuesday.