| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 44,711.43 | 342.87 | 0.77% |
| S&P 500 | 6,115.07 | 63.1 | 1.04% |
| Nasdaq | 19,945.64 | 295.69 | 1.50% |
| VIX | 15.1 | -0.79 | -4.97% |
| Gold | 2,957.20 | 28.5 | 0.97% |
| Oil | 71.51 | 0.14 | 0.20% |
US MARKET
Major stock indexes flatlined it on Tuesday, with all indices treading water. There was certainly little directional momentum from the J Powell testimony to Congress, simply reaffirming the ‘ pause and wait and see’ Fed stance. The S&P 500 sleepwalked higher 0.1%. The Nasdaq 100 down marginally 0.2%. The Dow Jones Industrial Average added 0.3%.
More broadly, the yield on 10-year Treasuries gained one basis point to 4.54%. The Dollar Spot Index decline 0.2%. Gold came off by 0.1 and effectively in-line with its Monday record high at US$2,904 an ounce.
Considering the US reporting season, market reactions have been strongest in the Financials and Industrials sector. Mag 7 stocks, 6 of 7 of which have now reported, have all declined immediately post results. It is not enough to beat guidance, only a materially outlook upgrade will be considered a positive given the way these stocks have been priced. Most critically, Nvidia reports at the end of February. This result will be the singular most result this reporting season given the stock is at the center of the AI universe.
Also worth noting is that a number of major global stock markets have outperformed the US market since the beginning of 2025 (finally!!), and particularly Europe. Around Thanks Giving last year was when the valuation differential between US and European markets hit an all-time high. Strategists increasingly called for a market rotation to a degree. There is also a clear between interest rate policy settings between the US and the rest of the world, with the likes of Europe and Australia on, or imminently, on a cutting cycle. Financials, Industrials, and Consumer Discretionary all typically do well in such and environment. Additionally, the strengthening US dollar is a clear positive for export heavy companies. Both Europe and, for example, Australia have markets that are heavily centric these sectors and relatively not so Technology.
AUSTRALIAN EQUITY MARKET WRAP
The S&P/ASX 200 Index edged up just 1.2 points to 8484.1 at the close despite seven of the 11 sectors finishing higher, led by industrials and technology stocks. Healthcare stocks still weighed on the ASX 200 after index heavyweight CSL declined 5% to $256.96 after the biotech said low immunisation rates in the US hurt first-half sales for its vaccination business.
Upbeat earnings results from Macquarie Group to Seven West Media provided positive momentum for the Australian market. Macquarie gained 1.6% to $231.54 after the investment bank said it was on track to meet full-year guidance. That’s after its third-quarter performance broadly matched last year’s.
Commonwealth Bank said solid lending growth and sound credit quality helped drive a $5.13 billion first-half profit, which was up 2 per cent on the first half of last year and beat expectations. The march continues.
Seven West Media rallied 6.1% to 17.5¢ despite reporting a slump in half-year profit to $18 million. It did, however, flag that the advertising market was finally turning, sending its shares higher along with Nine Entertainment which jumped more than 14% to $1.47.
ASX futures are pointing up 4 points or 0.1% to 8440 as traders responded to the positive earnings result from Australia’s largest bank. Reporting results on Tuesday are Breville, CSL, Seven Group and Seven West Media.
The AUD/USD rate decline marginally by 0.02% to 0.6276.