US Markets
| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 3884.26 | 31.99 | 0.08% |
| S&P 500 | 5187.70 | 6.69 | 0.13% |
| Nasdaq | 16332.56 | -16.69 | -0.10% |
| VIX | 13.23 | -0.26 | -1.93% |
| Gold | 2323.20 | -1.10 | -0.05% |
| Oil | 78.29 | -0.11 | -0.09% |
US MARKET
The S&P 500 posted a slight gain on Tuesday, continuing its upward trend with a 0.1% increase, raising its yearly gain to 8.8%. Similarly, the Dow Jones Industrial Average also rose by 0.1%, marking its fifth day of gains, while the Nasdaq slightly fell by 0.1%.
Stocks have recovered recently, buoyed by optimism for potential interest rate cuts and positive first-quarter corporate earnings, despite a pullback in April. However, Disney shares plunged 9.5% after the company reported a quarterly loss and an earnings outlook below expectations. Steve Wyett from BOK Financial commented on the limited room for stock price errors amid future uncertainties.
Wyett remains optimistic about further gains if inflation eases and the Federal Reserve cuts rates. Although recent data suggested persistent inflation, a slowdown in hiring indicated by the latest jobs report has renewed hopes for rate cuts, with futures traders predicting a 90% likelihood of a cut by year’s end.
Neel Kashkari of the Federal Reserve Bank of Minneapolis suggested rates might stay unchanged for a while, though changes could occur if inflation decreases or the job market weakens.
The 10-year Treasury yield slightly dropped to 4.46%.
In other earnings news, Celsius’s shares fell 1.8% after missing sales forecasts. Palantir’s shares dropped over 15% despite strong revenue due to slowed growth in its U.S. commercial segment. Tesla’s shares declined by 2.9% following a federal inquiry into its Autopilot system.
Upcoming earnings reports include Uber on Wednesday and Warner Bros. Discovery on Thursday.
LOCAL MARKET
The Australian stock market rose after the Reserve Bank kept interest rates steady, less hawkish than anticipated regarding future hikes despite persistent inflation. The S&P/ASX200 index increased by 1.44% to 7,793.3, and the All Ordinaries index went up by 1.42% to 8,065.5.
The Reserve Bank maintained a neutral stance, signaling it might be some time before inflation is sustainably within the target range, taking a vigilant approach to potential increases.
Market gains accelerated with the announcement, led by a 2.8% rise in utilities. Financials saw mixed results; ANZ reported a 4% profit drop to $3.4 billion for the half-year but ended slightly up by 0.1%. In contrast, Westpac and CBA rose by 2.8% and 2.1% respectively, while NAB fell by 1.5%.
In other sectors, AGL increased by 6.2% after boosting its earnings forecast, while mining giants Rio Tinto and BHP both grew by 1.6%. However, Sims Limited fell 6.4% due to weaker demand impacting scrap metal prices.
The Australian dollar closed at 65.91 US cents, slightly down from the previous day.