| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 42011.59 | -184.93 | -0.44% |
| S&P 500 | 5699.94 | -9.60 | -0.17% |
| Nasdaq | 17918.48 | -6.65 | -0.04% |
| VIX | 20.49 | 1.59 | 8.41% |
| Gold | 2675.70 | -3.80 | -0.14% |
| Oil | 73.91 | 0.16 | 0.20% |
US MARKET
On Thursday, U.S. indexes dipped as investors assessed rising jobless claims and geopolitical tensions. Weekly jobless claims rose to 225,000, above forecasts of 221,000, though claims remained historically low. Meanwhile, investors kept a close eye on the escalating Middle East conflict, with oil prices spiking on fears of potential supply disruptions following a missile attack by Iran on Israel.
Attention now shifts to the September nonfarm payrolls report, expected on Friday. Analysts predict the unemployment rate will hold steady at 4.2%, with 150,000 new jobs added, up from 142,000 in August. The report is crucial for the Federal Reserve’s upcoming rate decisions, with markets pricing in a 65% chance of a 25-basis-point cut in November, following last month’s 50-basis-point reduction.
Bank of America analysts suggest a weaker jobs report could trigger a stronger market response, while inflation data may also influence the Fed’s next move. Elsewhere, OpenAI is allowing employees to sell stock after a major fundraising round, and Verdence warns that stocks could fall 10% if economic data continues to signal recession.
LOCAL MARKET
Australian shares are set to open lower, mirroring declines in New York as concerns grow over escalating tensions in the Middle East and traders await the release of the U.S. nonfarm payrolls report. ASX futures were down 27 points, or 0.3%, as of 7am AEST.
The highly anticipated U.S. jobs report, due at 10:30pm AEST on Friday, could reshape expectations for the Federal Reserve’s next rate cut in November.
Oil dominated headlines overnight after U.S. President Joe Biden said the U.S. was “discussing” potential retaliatory strikes on Iranian oil facilities by Israel. In response, both Brent Crude and West Texas Intermediate reached their highest intraday prices in a month, with futures contracts settling more than 5% higher.
In local market news, Origin Energy’s hydrogen project faces headwinds, with optimism and government support proving insufficient to offset the risks facing hydrogen developers. Meanwhile, fund manager Brad Clibborn of BAEP remains bullish on CSL, noting it’s the cheapest stock he owns, and highlighted Fisher & Paykel Healthcare as the standout from the recent reporting season.