| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 38,596.98 | -530.16 | -1.35% |
| S&P 500 | 5,147.21 | -64.28 | -1.23% |
| Nasdaq | 16,049.08 | -228.38 | -1.40% |
| VIX | 16.35 | 2.02 | 14.10% |
| Gold | $2,309.60 | $1.10 | 0.05% |
| Oil | $86.88 | $0.29 | 0.33% |
US MARKET
On Thursday, US stocks surged after reassuring remarks from Federal Reserve Chair Jerome Powell eased concerns about delayed interest rate hikes. Powell, speaking at Stanford University, emphasised stability despite early 2024’s higher inflation and highlighted the need for rate adjustments this year.
Market sentiment shifted, with a 60% chance of a rate cut by June, down from around three-quarters a month ago according to CME’s FedWatch Tool. However, initial jobless claims rose to 221,000, the highest since January, exceeding economist estimates.
Investors await Friday’s jobs report for key data on non-farm payrolls and unemployment. US indexes opened positively: the S&P 500 rose 0.7%, the Dow Jones Industrial Average increased by 0.4% (164 points), and the Nasdaq Composite climbed 0.8%.
Robert Kiyosaki, David Einhorn, Gary Shilling, and the Fed expressed concerns about inflation. Meanwhile, a former fund manager shared market risk strategies and favoured stocks.
In commodities, bonds, and crypto, West Texas Intermediate crude oil rose to $85.91 a barrel, Brent crude fell to $89.25 a barrel, gold dropped to $2,286.65 per ounce, the 10-year Treasury yield decreased to 4.341%, and Bitcoin rose to $66,991.
LOCAL MARKET
The local stock market rebounded on Thursday, driven by a surge in global commodity prices that lifted multiple sectors. The benchmark S&P/ASX200 index rose by 35 points, reaching 7,817, while the broader All Ordinaries climbed by 39 points to 8,072.5. All 11 categories on the ASX saw gains, led by a 1.2% increase in the information technology sector, with real estate stocks also performing well.
Federal Reserve Chair Jerome Powell announced that interest rates would remain unchanged until clearer signs of lower inflation emerge later this year, potentially stimulating significant growth in the global real estate market due to increased housing demand amid a strong global economy.
Overnight, heightened geopolitical tensions led to rises in oil and gold prices. Oil prices increased by 0.5%, while gold surged by 1.5% to an all-time high of $2294.99 per ounce, driven by demand for safe-haven assets during the turmoil.
The energy sector benefited from the rise in oil prices, with Beach Energy up by 3.5% and Santos by 0.6%. Gold miners also saw gains, with WA1 Resources up by 14% and Kingsgate by 10%. Larger gold miners such as Evolution Mining and Northern Star experienced boosts of 2% and 1% respectively.
However, major miners BHP, Rio Tinto, and Fortescue saw declines of 0.3%, 1%, and 0.95% respectively. The big four banks rebounded from a lacklustre Wednesday, with Westpac and ANZ leading at 0.8%, while CBA rose by 0.5% and NAB edged down by 0.1%.
S&P Global Ratings upgraded Westpac’s credit profile to an A+, citing reduced sector-wide risks. The financial sector as a whole increased by 0.4%. Treasury Wine Estate continued its growth, rising by 1.4% after China’s decision to drop wine tariffs, despite flat performance in the consumer staples sector.
Suncorp climbed by 0.1% following its announcement of the sale of its New Zealand-based subsidiary Asteron Life to Resolution Life for NZ$410 million (AU$376 million). The Australian dollar continued its gradual rise, reaching 65.9 US cents, up from 65.2 US cents at Wednesday’s ASX close.
The NZX 50 fell by -5.23 points or -0.04% to 12,035.26, while the Nikkei gained 321.29 points or 0.81%, closing at 39,773.14.