US Markets
| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 38852.27 | 176.59 | 0.46% |
| S&P 500 | 5180.74 | 52.95 | 1.03% |
| Nasdaq | 16349.25 | 192.92 | 1.19% |
| VIX | 13.49 | 0.00 | 0.00% |
| Gold | 2332.90 | 24.30 | 1.05% |
| Oil | 78.68 | 0.57 | 0.73% |
US MARKET
Renewed optimism for interest-rate cuts later in the year, coupled with a strong performance in technology shares, drove a rally that boosted all major U.S. stock indexes last Friday, leading to overall weekly gains. The NASDAQ Composite surged by 2.0%, the S&P 500 by 1.3%, and the Dow Jones by 1.2%.
A combination of positive corporate earnings and Apple’s announcement of a $110-billion share buyback plan sparked early trading enthusiasm. Further buoyance came from the Labor Department’s jobs report, which indicated a slowdown in hiring and wage growth in April, hinting at potential easing inflation pressures without significant job losses.
The tech-heavy NASDAQ led the gains, rising 2% on Friday to close the week 1.4% higher. The S&P 500 and the Dow also saw increases. Following the jobs data, futures traders increased their bets on rate cuts, leading to a drop in bond yields.
While the Federal Reserve earlier acknowledged challenges in controlling inflation, it hinted at a greater likelihood of cutting rather than raising rates. However, some analysts caution that the cooling labor market might lead to a recession by year-end.
In other market movements, Apple’s stock rose 6% after its buyback news, while companies like MasTec and Live Nation also posted significant gains. Conversely, Expedia faced a sharp decline after disappointing earnings, and TD Bank’s shares dropped amid reports of a money laundering investigation involving the bank.
LOCAL MARKET
Following a weaker-than-expected U.S. jobs report, the Australian share market saw gains, fueled by renewed hopes for earlier interest rate cuts. The S&P/ASX200 index increased by 0.7% to 7,682.4, and the All Ordinaries index rose by 0.69% to 7,952.3.
The U.S. jobs data, revealing a rise in non-farm payrolls by 175,000—below the expected 240,000—led to speculation about potential rate cuts by the Federal Reserve, with JP Morgan predicting a possible July cut ahead of the market’s expectation for cuts in September and December. This news weakened the U.S. dollar, boosting the Australian dollar above 66 US cents for the first time in nearly four weeks.
Ahead of the Reserve Bank of Australia’s rate decision, where rates are expected to hold at 4.35%, the market is closely watching for any shifts in the RBA’s tone after recent inflation data.
Market highlights included the property sector leading gains with a 1.8% increase, while Westpac, despite a profit drop, rose 2.7% after announcing a dividend raise and a $1 billion share buyback. In mining, notable rises included Fortescue and BHP, and Southern Cross Electrical Engineering jumped 20.8% after securing a significant contract.
Conversely, Tourism Holdings plummeted by 36.8% after revising its profit forecast downwards due to a weakening economy impacting its business.