US Market
| Name | Week Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 39313.64 | -162.26 | -0.41% |
| S&P 500 | 5218.19 | -15.99 | -0.31% |
| Nasdaq | 16384.47 | -44.35 | -0.27% |
| VIX | 13.19 | 0.13 | 1.00% |
| Gold | 2173.00 | -3.40 | -0.16% |
| Oil | 81.98 | 0.03 | 0.04% |
US MARKET
Stocks dipped for a second consecutive day as enthusiasm over potential interest rate cuts waned. The Dow Jones Industrial Average led the decline, dropping 0.41% or 162 points, with the S&P 500 and Nasdaq Composite each slipping around 0.3%.
Despite the retreat, all three indexes are still ahead for the year, surpassing many Wall Street predictions.
Investors are pondering whether to adjust their bullish outlook or take some profits off the table, given the Federal Reserve’s signal of impending interest rate cuts and strong economic growth. The Federal Reserve’s plan for multiple rate cuts this year remains intact, despite persistent inflation concerns.
Treasury yields rose slightly after a four-day decline, with the 10-year note ending at 4.252%.
There’s a growing belief that sectors beyond big tech are driving the market rally, prompting some investors to diversify into energy and finance stocks. The upcoming earnings season is expected to provide clearer direction for the market.
Super Micro Computer continued its upward surge, gaining 7.2% on Monday. Micron Technology also hit a record high with a 6.3% increase, buoyed by robust demand for memory chips.
However, Take-Two Interactive Software saw a 4.1% decline amidst reports of a potential delay in its Grand Theft Auto series release. United Airlines dropped 3.4% after the Federal Aviation Administration announced increased oversight following safety issues.
Earnings reports from companies like McCormick, GameStop, Carnival, Paychex, and Walgreens Boots Alliance are expected this week. Markets will be closed on Friday for Good Friday observance.
LOCAL MARKET
The local stock market reached its highest point in two weeks, nearly hitting a new all-time high as investors welcomed the prospect of future interest rate cuts.
The S&P/ASX200 climbed 41.3 points to 7,811.9, just 35.1 points shy of its record high from March 8. It also came close to its intraday peak of 7,844.4.
The broader All Ordinaries rose 45.2 points to 8,071.5.
Investors are optimistic about potential rate cuts, boosting sectors sensitive to interest rates like real estate, which saw a 1.8% rise. Property companies such as Goodman Group and Dexus saw significant gains.
West Africa Resources led gains in the ASX200, up 5.1% as gold prices rose.
In other sectors, Fortescue, BHP, and Rio Tinto saw gains, while the Big Four banks had mixed performances.
MMA Offshore surged 10.6% after agreeing to be acquired, while Star Entertainment Group fell 2.8% due to CEO Robbie Cooke’s resignation amid regulatory pressure.
The Australian dollar held steady at 65.26 US cents.
Looking ahead, the focus shifts to Australian consumer index data on Wednesday, with attention on potential impacts on Reserve Bank of Australia (RBA) decisions. The RBA meets next on May 6-7.
On the wider market, the NZX 50 gained 88.41 points to 12,067.03, while the Nikkei closed lower at 40,414.12.