| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 43,621.16 | 159.95 | 0.37% |
| S&P 500 | 5,955.25 | -28 | -0.47% |
| Nasdaq | 19,026.39 | -260.54 | -1.35% |
| VIX | 19.43 | 0.45 | 2.37% |
| Gold | 2,928.60 | -34.6 | -1.17% |
| Oil | 69.12 | -1.58 | -2.23% |
US MARKET
US stocks failed to recover on Monday following last week’s sharp losses, the S&P 500 fell 0.5% and the Nasdaq slid 1.2%m while with the Dow added 33 points. Weakness in tech dragged the Nasdaq lower, as Palantir plunged 10.5% (a stock no one really understands what it does – defense sector) and Microsoft fell 1% amid concerns over reduced data center spending.
Meanwhile, Apple added 0.7% after the company announced plans to invest $500 billion in the US over the next four years and hire 20,000 new workers. Looking ahead, attention turns to earnings reports from Home Depot, Lowe’s, and Nvidia, with the latter seen as a major market mover given its leadership in artificial intelligence.
Traders are also watching Friday’s release of the personal consumption expenditures (PCE) index, the Fed’s preferred inflation gauge, which could shape expectations for rate cuts. Despite recent volatility, investors are weighing whether the Fed’s stance on rates will provide a floor for the market in the months ahead.
Last week, while the S&P 500 Index was hovering near an all-time high and the Cboe Volatility Index was well below its five-year average, under the surface a more sceptical picture was shaping up — one that’s been already vindicated by the biggest selloff in two months. Last week, the ratio of outstanding VIX call options relative to puts neared its highest level since September 2023, with more than 1 million calls changing hands on Tuesday. Investors have started to boost bets that volatility will come back as Nvidia Corp.’s earnings on Wednesday could be the first in a whirlwind of events with the potential to send the market into conniptions. How to stay long and invested???? Big call for a fund manager not to heavily invested currently.
LOCAL MARKET
The S&P/ASX 200 Index rose 0.14% to close at 8,308 on Monday, recovering from early losses and snapping a five-day losing streak. The rebound came as investors looked ahead to Australia’s upcoming monthly inflation report, which is expected to offer important insights into the future direction of monetary policy following the Reserve Bank of Australia’s recent hawkish interest rate cut.
Financial stocks were the standout performers, with Commonwealth Bank rising 3%, NAB gaining 2.3%, and ANZ Group advancing 2.6%. Consumer stocks also saw gains, including Woolworths Group (+1.8%), Wesfarmers (+1%), and Aristocrat Leisure (+2.9%). However, shares of WiseTech Global dropped sharply by 20% after the logistics software provider announced the resignation of Chair Richard Dammery and three other directors due to “intractable differences” regarding former CEO Richard White’s role.
All the above understates the intraday moves – ASX dropping 1% on open, staging a major rebound, then a major sell-off late – all to settle effectively flat. Hard not to see this as a buy the dip day. Which is exactly what happened subsequently in overnight US equities trading.
Futures are down 45 points (-0.5%), indicating the S&P/ASX 200 Index would open at 8235, extending its losing streak. That’s after US indexes swung between gains and losses on Wall Street. Tuesday’s reporting season schedule includes Domino’s Pizza, Nine Entertainment, Platinum Asset Management, G8 Education and Woodside Energy.