| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 39431.51 | -81.33 | -0.21% |
| S&P 500 | 5221.42 | -1.26 | -0.02% |
| Nasdaq | 16388.24 | 47.37 | 0.29% |
| VIX | 13.60 | 1.05 | 8.37% |
| Gold | 2343.60 | 0.50 | 0.01% |
| Oil | 79.19 | 0.07 | 0.09% |
US MARKET
The Dow Jones Industrial Average fell 0.2%, or about 81 points, breaking its longest winning streak of the year, as investors await important inflation data releases this week. The S&P 500 saw a slight decline, while the Nasdaq Composite increased by 0.3%.
The market’s attention is fixed on the upcoming producer-price and consumer-price indices, which could influence the Federal Reserve’s decision on interest rates.
Inflation expectations have kept the Federal Reserve from cutting rates, which is a key driver for stock market performance. If the new data indicates easing inflation, it could open the door for rate reductions. Notably, tech stocks like Apple and Nvidia helped the technology sector rise by 0.5%, and the real estate sector gained 0.3%.
Moreover, the S&P 500’s current valuation is above its ten-year average, placing extra emphasis on the Fed’s upcoming decisions.
GameStop shares skyrocketed by 74%, marking their largest single-day gain since February 2021, while AMC Entertainment shares jumped by 78%. These dramatic rises followed posts by influential social media figures, highlighting how unconventional market dynamics and economic indicators are influencing investor sentiment in an increasingly intricate financial environment.
LOCAL MARKET
ASX 200 futures dropped by 8 points to a level of 7,776 as of 8 a.m. AEST, suggesting a potentially lower start to Tuesday’s trading session. This downtick is in response to a varied performance on Wall Street, which continues to influence global market sentiments. Additionally, significant activity in the commodities market, particularly with copper prices soaring to a two-year high, is impacting investor behaviour.
Investors are also keenly focused on the corporate landscape, notably the news from BHP that its latest $43 billion takeover offer for Anglo American was declined. This development could have broader implications for the mining sector and M&A activity within the industry.
Moreover, attention is turning towards the economic front with the Australian government set to announce its federal budget tonight. Expectations are centred on a projected $9 billion surplus, which could have significant implications for fiscal policy and economic management moving forward.
Market participants are balancing these domestic factors with broader international economic cues, including movements in commodity prices and global economic indicators, to gauge the potential direction of the ASX in upcoming sessions.