US Markets
| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 39056.39 | 172.13 | 0.44% |
| S&P 500 | 5187.67 | -0.03 | 0.00% |
| Nasdaq | 16302.76 | -29.80 | -0.18% |
| VIX | 13.00 | -0.23 | -1.74% |
| Gold | 2317.20 | -5.40 | -0.23% |
| Oil | 79.14 | 0.15 | 0.19% |
US MARKET
On Wednesday, the Dow Jones Industrial Average rose, marking its sixth consecutive day of gains with a 0.4% increase, adding 172 points. This is its longest winning streak this year. However, the Nasdaq dipped by 0.2%, and the S&P 500 barely moved, making its smallest shift since 2018.
The S&P 500’s minor decline ended its four-day gain, influenced by strong corporate earnings and expectations that the Federal Reserve might lower interest rates. Despite this, investors were cautious as they awaited more company results and upcoming economic reports on inflation and employment.
Recent corporate bond activities suggest increased market risk appetite, with $36 billion in new bonds issued early this week. In contrast, statements from Federal Reserve officials imply that high interest rates might persist to combat inflation.
In company news, Shopify’s shares fell sharply due to slower expected sales growth, while Intel’s forecast disappointed investors. Conversely, Lyft’s shares surged after reporting revenue growth and a reduced loss, while Uber’s unexpected loss led to a drop in its shares. Reddit saw its shares increase despite reporting higher revenue and a larger loss.
LOCAL MARKET
The domestic stock market saw a slight gain, continuing its five-day winning streak, as traders digested the Reserve Bank’s interest rate signals. The S&P/ASX200 index edged up by 0.14% to 7,804.5, matching the 0.14% increase of the All Ordinaries index to 8,076.7.
Westpac’s chief economist, Luci Ellis, expects the Reserve Bank to hold rates steady into late this year, based on recent comments by RBA governor Michele Bullock. “Rate hikes are possible, but unlikely, depending on future inflation trends,” said Ellis.
The ASX’s 11 sectors mostly advanced, with the biggest rise in industrials at 0.7%. Notably, Perpetual Group agreed to sell its wealth management division to KKR for $2.2 billion, focusing solely on asset management. This move pushed Perpetual’s shares up by 7.1% to $22.32.
In contrast, the mining sector saw declines, with BHP, Rio Tinto, and Fortescue posting slight losses. The healthcare sector performed well, led by Polynovo, which surged 8.0% after announcing record monthly revenue.
Banking stocks were mixed, while the financial sector saw gains from companies like AUB Group, anticipating a high net profit for the year. In energy, Santos and Yancoal rose after the EU proposed new sanctions on Russian LNG projects.
The Australian dollar slightly dipped to 65.78 US cents.