| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 39169.52 | 50.66 | 0.13% |
| S&P 500 | 5475.09 | 14.61 | 0.27% |
| Nasdaq | 17879.30 | 146.70 | 0.83% |
| VIX | 12.22 | -0.22 | -1.77% |
| Gold | 2341.30 | 2.30 | 0.10% |
| Oil | 83.39 | 0.01 | 0.01% |
US MARKET
US stocks opened higher as traders aimed to maintain the momentum from the first half of the year. The S&P 500 has already risen 14% year-to-date, reflecting a strong performance. Investors are eagerly awaiting the June jobs report, scheduled for release on Friday, which could influence future rate cut decisions.
On Monday, major indexes rose, adding to the gains from the robust first half of 2024. Bond yields also increased, with the 10-year Treasury yield climbing nine basis points to 4.441%. This growth is driven by optimistic expectations for rate cuts and the tech sector’s resilience, highlighted by companies like Nvidia, which continues to benefit from the AI boom.
Economists predict the June jobs report will show an addition of 190,000 jobs, a decrease from May’s 272,000. This data will provide insights into the economy’s strength and the Fed’s rate cut outlook. According to the CME FedWatch Tool, there is a 64.3% chance of a rate cut at the Fed’s September 18 meeting. Art Hogan, chief market strategist at B. Riley Wealth, noted that disinflationary trends in Q2 might prompt the Fed to proceed with rate cuts.
In notable stock movements, Chewy’s stock surged after retail trader Keith Gill disclosed a $245 million stake in the pet care company. Apple rallied nearly 3 per cent on reports it is preparing for a surge in iPhone 16 orders, while Tesla leapt more than 6 per cent. Microsoft and Amazon each rose at least 2 per cent, and the NYSE Fang+ Index closed 2.3 per cent higher.
Among smaller cap techs, Dell, Zscaler, Broadcom, Crowdstrike, and Palantir were all at least 2 per cent higher. However, AMD, Arm, Pinterest, and Uber were at least 2 per cent lower. Nvidia was 0.6 per cent higher despite a report from Reuters that the company is poised to be charged with allegedly anticompetitive practices by French antitrust enforcers.
LOCAL MARKET
Australian shares are poised to slip despite modest overnight gains in the US and Europe, as traders await the latest minutes from the Reserve Bank of Australia later this morning.
ASX futures are down 24 points, or 0.3 per cent, to 7720 near 7.30am AEST. The RBA’s latest meeting minutes will be released at 11.30am. Ahead of the minutes, market data from ANZ shows traders are pricing a 70 per cent chance of a rate hike from Australia’s central bank before the end of the year.
French stocks rebounded more than 1 per cent after right-wing parties won a lower-than-expected percentage of votes in Sunday’s first round of parliamentary voting in France.
US Treasury yields spiked higher, with the 10-year yield nearing 4.50 per cent, as traders see the potential for a Republican sweep in November. Donald Trump is threatening to impose tariffs, which could dent growth.
Investors are hunting for bargains among ASX stocks, with funds scouring the market’s oversold names in anticipation of a rebound as the new financial year kicks off. Additionally, the volatile performance of small caps around the end of the financial year has exposed some of the market’s underlying dynamics, as seen in Monday’s list of worst performers mirroring Friday’s best performers.