| Name | Price | Change | % Chg |
|---|---|---|---|
| Dow | 42,171.66 | -44.14 | -0.10% |
| S&P 500 | 5,980.87 | -1.85 | -0.03% |
| Nasdaq | 19,546.27 | 25.18 | 0.13% |
| VIX | 20.14 | -1.46 | -6.76% |
| Gold | 3,392.30 | -15.8 | -0.46% |
| Oil | 75.2 | 0.06 | 0.08% |
OVERVIEW OF THE US MARKET
A rally in stocks fizzled out after Federal Reserve Chair Jerome Powell warned that tariff-driven economic uncertainty and inflation risk continued to complicate the central bank’s bid to ease monetary policy in earnest. Gains in bonds waned. The dollar barely budged. Equities closed little changed, with the S&P 500 ending below 6,000 after briefly crossing that mark. Powell noted that increases in tariffs are likely to boost prices, while adding that the effects on inflation could be more persistent. He also declined to say if he’ll stay on after his term ends. Treasury two-year yields, which are more sensitive to imminent Fed moves, almost erased a decline that had earlier reached seven basis points.
The Fed’s decision to hold rates steady – coupled with Powell’s latest warning on tariffs – underscores the delicate balance facing policymakers guiding the economy toward continued expansion. While officials continued to pencil in two rate cuts in 2025, they downgraded their estimates for growth this year while lifting forecasts for unemployment and inflation. While the median expectation for two rate cuts in 2025 didn’t change, a number of officials lowered their projections. Seven officials now foresee no rate cuts this year, compared with four in March. Two others pointed to one cut this year. While most stocks struggled to find direction Wednesday, companies tied to cryptocurrency surged on the Senate’s passage of legislation Tuesday regulating stable coins, a type of digital money. Cryptocurrency exchange Coinbase Global was the biggest gainer on the S&P 500, rising 16%.
OVERVIEW OF THE AUSTRALIAN MARKET
A sell-off in the mining sector triggered by a flagging iron price weighed on the share market into the close, while most investors stayed largely on the sidelines amid an escalation in the Israel-Iran conflict. The benchmark S&P/ASX 200 Index fell 10.1 points, or 0.1 per cent, to 8531.2 on Wednesday after the gauge briefly traded in the black. Eight of the 11 industry groups edged higher, but the gains were offset by a 1.6 per cent drop in the materials sector.
On the ASX, the iron ore majors fell as the price for the steelmaking ingredient retreated below $US93 a tonne in Singapore, spurred by a seasonal slowdown in demand and signs that Chinese mills are curbing steel output. Citi has also downgraded its 12-month iron ore price forecast to $US90 a tonne. BHP dropped 1.2 per cent to $36.86, Fortescue 4 per cent to $15.03, and Mineral Resources 4.6 per cent to $22.59. profit-taking hit the gold stocks as the price of the precious metal failed to push much higher despite the heightened geopolitical risk. Northern Star fell 2 per cent to $20.58 and Evolution slid 3.6 per cent to $8.15. The tech sector was also strong, climbing 1.1 per cent and buoyed by Wisetech’s 1.5 per cent advance to $108.93. TechnologyOne jumped 2 per cent to $41.15. In corporate news, data centre operator NextDC slipped 1 per cent in early trade before recovering in the afternoon session, closing up 0.2 per cent at $14.01. The company has tied up a new $2.2 billion bank facility to refinance its existing debt.