| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 39872.99 | 66.22 | 0.17% |
| S&P 500 | 5321.41 | 13.28 | 0.25% |
| Nasdaq | 16832.62 | 37.75 | 0.22% |
| VIX | 11.86 | -0.29 | -2.39% |
| Gold | 2425.20 | -0.70 | -0.03% |
| Oil | 79.06 | -0.74 | -0.93% |
US MARKET
Stocks continued their upward trend on Tuesday, maintaining a strong May rally. The S&P 500 rose 0.3% to a new record, the Nasdaq Composite gained 0.2%, and the Dow Jones Industrial Average increased by 66 points, or 0.2%. All three indexes are up over 5.4% for the month.
Investor confidence is bolstered by easing inflation and expectations of a Federal Reserve rate cut this year. Strong corporate earnings have also contributed, with S&P 500 companies seeing a 5.7% profit increase from a year ago.
“Stocks are now seen as a buy high, sell higher asset class,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. Positive data on inflation, corporate profits, and interest rates support current stock prices. April’s consumer-price inflation rose at its slowest pace since 2021, and retail sales remained steady from March, indicating a cooling economy without severe slowdown risks.
The 10-year Treasury yield settled at 4.414% on Tuesday, down from 4.436% on Monday, after reaching 4.706% in April. Federal Reserve Governor Chris Waller mentioned progress on inflation but emphasized the need for several more months of data before a rate cut.
High stock prices could lead to a sharp selloff if economic data worsens unexpectedly. The S&P 500 trades at 20.8 times its projected earnings over the next 12 months, above the five-year average of 19.6 times. Year-to-date, the index is up 11.6%.
On the corporate front, Lowe’s shares fell 1.9% after reporting declining sales, while Macy’s stock rose 5.1% following an improved profit forecast. Investors await Nvidia’s earnings report on Wednesday, with expectations of $24.6 billion in revenue and $5.19 per share in profit.
LOCAL MARKET
Australian shares are set to rise, following modest gains in New York where major benchmarks reached new record highs.
Futures for the S&P/ASX 200 increased by 0.3% overnight, mirroring the S&P 500’s 0.3% gain, marking its 24th all-time high this year. The Nasdaq also closed at a record for the fourth time in six sessions ahead of Nvidia’s earnings report on Wednesday (Thursday AEST). The VIX, known as the fear index, fell 2.4% to 11.86, continuing a 30% decline over the last month.
Oil prices dropped, nearing three-month lows, with Brent futures settling below $83 a barrel. The Biden administration plans to sell 1 million barrels of gasoline from its reserve, as mandated by Congress.
In digital currencies, ether held above $3700 after a 14% surge, while bitcoin traded near $69,650, having briefly surpassed $71,500 the previous day in New York.
The Reserve Bank of New Zealand is set to announce its interest rate decision. ANZ noted the significant gap between market expectations and the RBNZ’s projections, suggesting a potential upward bias in rates if current conditions persist. The timing of the RBNZ’s OCR track falling below 5.5% and its near-term outlook will be crucial