| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 42342.24 | 15.37 | 0.04% |
| S&P 500 | 5867.08 | -5.08 | -0.09% |
| Nasdaq | 19372.77 | -19.92 | -0.10% |
| VIX | 24.09 | -3.53 | -12.78% |
| Gold | 2610.00 | -43.30 | -1.63% |
| Oil | 69.85 | -0.73 | -1.03% |
US MARKET
US stocks ended mostly unchanged as attempts to rebound from the prior day’s sell-off faltered under the weight of a hawkish Federal Reserve outlook on interest rates. The Dow Jones Industrial Average narrowly avoided extending its historic 10-day losing streak, closing slightly positive at 0.04%. However, the S&P 500 and Nasdaq Composite edged lower, each declining around 0.1%.
Treasury yields continued their ascent, with the 10-year yield rising roughly seven basis points to 4.57%, its highest level since May. This followed Wednesday’s Fed announcement, which scaled back the number of rate cuts expected next year. Chair Jerome Powell described the decision to cut rates by a quarter point as a “closer call,” prompting markets to interpret it as a “hawkish cut.”
The Fed’s cautious tone triggered a sharp reaction midweek, leading the S&P 500 and Nasdaq to post their worst performances since summer. Thursday’s trading session reflected lingering investor unease, as efforts to recover lost ground largely stalled.
On the economic front, revised GDP data showed the US economy grew at an annualized rate of 3.1% in the third quarter, surpassing the prior estimate of 2.8%. Additionally, weekly unemployment claims dropped to 220,000 for the week ending December 14, down from 242,000 the previous week, indicating resilience in the labor market.
LOCAL MARKET
Australian shares are expected to decline as markets digest the Federal Reserve’s revised outlook of fewer interest rate cuts and heightened inflation for next year. ASX futures dropped 49 points, or 0.6%, as of 8 a.m. AEDT, while the Australian dollar rose 0.4% to US62.42¢, buoyed by a weaker US dollar.
Earlier this week, the Federal Reserve reduced its 2025 rate cut projections from three to two and signaled a cautious approach to future policy adjustments, citing reinflation risks. This prompted a sell-off in US markets, with Australian traders mirroring the sentiment on Thursday. Wall Street attempted a recovery overnight, but the prevailing risk-averse mood weighed on Australian markets.
In corporate news, Burrandong Minerals is preparing to debut on the ASX. Integral Diagnostics finalized its merger with Capitol Health, forming a diagnostics imaging group valued near $1 billion. Capitol shareholders received 0.12849 Integral shares for each Capitol share, and the newly issued shares are set to commence trading on Monday.