| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 37,798.97 | 63.86 | 0.17% |
| S&P 500 | 5,051.41 | -10.41 | -0.21% |
| Nasdaq | 15,862.25 | -19.77 | -0.12% |
| VIX | 18.40 | -0.83 | -4.32% |
| Gold | 2,400.50 | -7.40 | -0.30% |
| Oil | 85.27 | -0.09 | -0.11% |
US MARKET
The Dow Jones rose as Treasury yields hit new highs, with Fed Chair Powell hinting at delayed rate cuts due to firmer-than-expected inflation.
Investors lost conviction in rate cuts post-strong CPI data last week. Powell’s comments confirmed market sentiment, stabilizing stocks after recent declines.
S&P 500 dipped 0.2%, Dow snapped a losing streak, Nasdaq slipped 0.1%.
Powell’s remarks suggested patience for rate cuts, easing concerns of rate hikes. 10-year Treasury yield reached its highest since November at 4.657%.
UnitedHealth’s strong earnings boosted Dow, while mixed bank earnings affected trading sentiment.
Small-cap stocks underperformed, with the Russell 2000 dipping.
Rate cuts, seen as beneficial for smaller businesses, are not imminent.
LOCAL MARKET
The Australian share market experienced a significant downturn, influenced by rising bond yields and escalating tensions in the Middle East. The S&P/ASX200 index closed down by 1.81% to reach an eight-week low of 7,612.5, while the broader All Ordinaries dropped by 1.84% to 7,862.3.
This marked the ASX200’s fourth consecutive decline, with the second-largest drop in 13 months. Market analyst Jessica Amir noted a continuation of selling pressure and emphasised the market’s volatility.
The drop was attributed to better-than-expected US retail sales data, indicating a strong economy and reducing expectations for rate cuts. This led to increased bond yields, impacting equities. Australian government bond yields rose to their highest levels since December.
Amidst escalating tensions in the Middle East, particularly between Israel and Iran, described as a “perfect storm” by analyst Tony Sycamore, the local bourse suffered widespread losses across all sectors. Only a handful of companies in the ASX200 saw gains, with the majority closing lower.
The Australian dollar dropped to a five-month low against the US dollar, reaching 64.20 US cents.
Similarly, the NZX 50 index lost 0.95%, and the Nikkei closed down 1.98% at the time of writing.