| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 37775.38 | 22.07 | 0.06% |
| S&P 500 | 5011.12 | -11.09 | 0.22% |
| Nasdaq | 15601.50 | -81.87 | -0.52% |
| VIX | 18.00 | -0.21 | -1.15% |
| Gold | 2394.70 | -3.30 | -0.14% |
| Oil | 82.62 | -0.11 | -0.13% |
US MARKET
Bond yields rose, stocks mostly slumped Thursday as investors adjusted to the idea that interest rates may not decrease this year. The S&P 500 fell 0.2%, its fifth consecutive daily decline, while the Nasdaq Composite dropped 0.5%. The Dow Jones Industrial Average saw a slight gain of less than 0.1%. The yield on 10-year Treasury notes increased to 4.646% from Wednesday’s 4.584%.
Stocks initially rose following corporate earnings reports and strong economic data, but retreated later in the day. Last week’s higher-than-expected inflation data has led to a sell-off, diminishing hopes of rate cuts this year. The prospect of prolonged higher rates has reduced the appeal of riskier assets like tech stocks. Sectors sensitive to rates, such as real estate, have suffered.
Despite the decline, the S&P 500 remains about 20% higher than in late October when Treasury yields peaked. The question now is how much stocks should adjust if their rise was based on anticipated rate cuts. Economic data showed strength in the labor market, with regional manufacturing activity rising sharply.
Quarterly results drove notable stock movements. Genuine Parts rose 11%, while Alaska Air shares gained ground despite challenges with the Boeing 737 MAX 9. However, Equifax and Snap-On saw significant losses after disappointing earnings reports.
In commodities, cocoa prices continued to surge due to poor weather in West Africa, reaching record highs. Copper futures also rose to their highest level in nearly two years.
LOCAL MARKET
The Australian stock market rebounded from five consecutive days of losses, driven by a surge in mining stocks due to rising ore prices.
The S&P/ASX200 index rose by 0.48%, closing at 7,642.1 points, while the broader All Ordinaries also increased by 0.48% to 7,898.9 points.
Despite a slight uptick in unemployment reported by the Australian Bureau of Statistics, investors remained optimistic about potential rate cuts later in the year.
Earlier concerns about Middle East tensions and US interest rates eased as commodities prices, particularly iron ore, saw a significant boost. Materials and technology stocks performed well, with major mining companies like Rio Tinto and BHP registering gains. Base metal miners also benefited from the upward trend.
The big four banks saw modest gains, while Qantas rose 3.4% on the back of shareholder rewards. However, the healthcare sector experienced losses, led by Resmed and Ramsay Health Care.
The Australian dollar strengthened slightly against the US dollar, trading at 64.47 cents.
The NZX 50 lost 0.33% to 11,836.04 points, while on the Nikkei, the index gained 0.31% to close at 38,079.70 points.