| Name | Price | Change | % Chg |
|---|---|---|---|
| Dow | 44,911.82 | -34.3 | -0.08% |
| S&P 500 | 6,449.15 | -0.65 | -0.01% |
| Nasdaq | 21,629.77 | 6.8 | 0.03% |
| VIX | 14.99 | -0.1 | -0.66% |
| Gold | 3,376.00 | -2 | -0.06% |
| Oil | 63.36 | -0.06 | -0.09% |
OVERVIEW OF THE US MARKET
Wall Street opened the week quietly as investors turned their focus to the Federal Reserve’s annual Jackson Hole Symposium, where Chair Jerome Powell is expected to outline the central bank’s policy framework.
Geopolitical developments also weighed, with President Trump signaling plans for a trilateral peace meeting with Russia and Ukraine. The S&P 500 hovered near record highs after weeks of strong gains, while traders braced for retail earnings from Walmart and Target to assess consumer resilience under Trump’s tariff regime.
Corporate earnings have provided support for equities. The latest season delivered one of the strongest waves of upside surprises since 2021, with S&P 500 companies widely beating forecasts, aided by tariff workarounds and a weaker dollar. Analysts are raising profit estimates at the fastest pace in nearly four years, underpinning valuations despite concerns about elevated multiples.
In tech, Palo Alto Networks issued a stronger-than-expected annual forecast, highlighting growth potential in its AI-driven cybersecurity product bundles. Private equity firm Thoma Bravo is reportedly in talks to acquire HR software provider Dayforce Inc., underscoring continued deal-making in enterprise technology.
In healthcare, Novo Nordisk moved to cut Ozempic prices for cash-paying U.S. patients amid political scrutiny over drug costs. It also gained U.S. approval for Wegovy to treat a form of liver disease, ahead of rival Eli Lilly, strengthening its weight-loss drug dominance. Meanwhile, Bayer AG agreed to settle lawsuits tied to toxic chemical exposure at a Seattle-area school involving its Monsanto unit.
In consumer and leisure, Starbucks announced a uniform 2% pay raise for all salaried North American employees, shifting from manager-discretionary increases. Separately, investors agreed to take Soho House private in a $2.7 billion buyout after weak public market performance.
In transport and energy, Air Canada withdrew its financial guidance following widespread cancellations from a flight attendants’ strike, while EDF warned of nuclear output cuts due to shallow river levels.
Finally, Hon Hai Precision will run a U.S. factory for SoftBank’s Stargate venture with OpenAI and Oracle, marking a major step in advanced tech manufacturing.
OVERVIEW OF THE AUSTRALIAN MARKET
Australia’s share market notched a fresh record close on August 18, 2025, extending a streak of intraday highs amid easing tariff fears and positive earnings sentiment, though mixed sector performance highlighted ongoing rotations. The S&P/ASX 200 rose 0.23%, or 20.7 points, to 8,959.3, while the broader All Ordinaries gained 0.23% to 9,233.5. Advancers slightly outpaced decliners 145 to 125 on the S&P/ASX 300, reflecting cautious buying despite a choppy session.
8 of 11 sectors advanced, led by communication services (+1.39%) on REA Group’s surge, information technology (+0.82%), and financials (+0.70%) buoyed by bank rebounds. Materials (-0.75%) and energy (-0.49%) lagged, with industrials -0.05%. Financials recovered: NAB (+2.6% to $40.23) on well-received quarterly update, CBA (+1.2% to $170.19) snapping post-earnings losses, Westpac (+0.7%), though ANZ (-1.5%). Communication: REA Group (+4.5%) after CEO appointment. Materials mixed: lithium resilient—Pilbara Minerals (+3.2%), Liontown Resources (+6.5%), Mineral Resources (+1.3%) on GFEX futures +4%—offsetting iron ore dips (BHP -1.2%, Fortescue -0.6%, Rio Tinto -1.5%). BlueScope Steel (-3.0%) after profit plunge to $84 million.
Standouts: Kaili Resources (+2900.0%) on REE drilling approval (not a typo), Apiam Animal Health (+44.9%) post-proposal, Beacon Minerals (+34.5%) on assays. Decliners: Audinate Group (-20.8%) on FY25 presentation, DigiCo REIT (-14.1%) after results, Aml3d (-11.1%) on annual report.
July wage growth at 0.8% quarterly (poll met), 3.4% yearly (slight surprise) and employment +24.5k (near poll), unemployment 4.2% align with RBA’s post-3.60% cut path, Governor Bullock emphasizing data-dependency. Aussie dollar +0.11% to 65.14 US cents. Capital.com’s Kyle Rodda notes high bar for earnings justifying records, with BHP, CSL reporting tomorrow amid tariff fade and Wall St highs.
AMP’s Shane Oliver views easing positive if recession-free, boosting profits over cash, but warns volatility from valuations and Trump’s wars. A Journal of Financial Economics study underscores P/E spreads 75% driven by expected returns, not growth, highlighting discount rates/mispricing—relevant as ASX nears 9,000.