EQUITIES
| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 38,459.08 | -2.43 | -0.01% |
| S&P 500 | 5,199.06 | 38.42 | 0.74% |
| Nasdaq | 16,442.20 | 271.84 | 1.68% |
| VIX | 14.91 | -0.89 | -5.63% |
| Gold | $2,390.90 | $18.20 | 0.77% |
| Oil | $85.55 | $0.53 | 0.62% |
US MARKET
Tech stocks led Thursday’s market rebound from inflation concerns.
The Nasdaq rose 1.7%, S&P 500 up 0.7%, Dow Jones down 0.01%.
Investors shrugged off Wednesday’s pullback. Bank of America predicts one rate cut in December.
Tech giants like Amazon, Nvidia, and Apple saw gains. Fed officials remain cautious about rate cuts.
Treasury yield rose to 4.575%.
Earnings season starts with a 3% expected increase in S&P 500 earnings.
Regulatory issues hit Morgan Stanley and Regeneron Pharmaceuticals.
Constellation Brands saw stock rise on better-than-expected sales.
LOCAL MARKET
The Australian stock market fell for the first time this week as US inflation exceeded expectations, delaying potential interest rate cuts by the Federal Reserve.
The S&P/ASX200 index initially dropped 1.2% but recovered slightly to finish 0.44% lower at 7,813.6. The All Ordinaries also fell by 0.44% to 8,074.1.
The US Bureau of Labour Statistics reported a 3.5% increase in consumer prices, causing concern about Fed rate cuts. Economists now predict only one or two rate cuts this year, compared to earlier forecasts of three.
Market reaction was swift, with US Treasury yields and the dollar rising, while the S&P500 dropped by 1%.
Eight of the ASX’s 11 sectors declined, with real estate and consumer discretionary sectors hit the hardest. The mining sector helped offset losses, rising by 0.6%. Despite the market downturn, goldminer Northern Star saw a rise in its stock price.
Looking ahead, the European Central Bank is expected to maintain its rates.
The Australian dollar fell to a 10-day low against the US dollar, trading at 65.22 US cents.
On the NZX, the NZX 50 lost -37.61 points or -0.32% to 11,934.31. In Japan, the Nikkei dropped -139.18 points or -0.35% at the time of writing, to be closed at 39,442.63.