| Name | Daily Close | Daily Change | Daily Change (%) |
|---|---|---|---|
| Dow | 43729.34 | -0.59 | 0.00% |
| S&P 500 | 5973.10 | 44.06 | 0.74% |
| Nasdaq | 19269.46 | 285.99 | 1.51% |
| VIX | 15.20 | -1.07 | -6.58% |
| Gold | 2713.60 | 37.30 | 1.39% |
| Oil | 72.18 | 0.49 | 0.68% |
US MARKET
A tech-driven rally pushed the S&P 500 and Nasdaq Composite to record highs Thursday as investors welcomed a fresh rate cut from the Federal Reserve and reacted to Donald Trump’s electoral victory. In line with expectations, the Fed reduced interest rates by 25 basis points, setting the benchmark rate at a range of 4.5% to 4.75%.
The S&P 500 rose about 0.7%, and the Nasdaq Composite jumped nearly 1.5%, with major gains from Nvidia and Amazon, both hitting new highs. The Dow Jones Industrial Average remained flat after a recent 1,500-point surge, its best day since 2022.
Following Trump’s presidential win, investor sentiment remains high, as his proposed corporate tax cuts and deregulation initiatives fuel optimism for economic growth that could boost stocks. When asked about the election’s impact on policy, Fed Chair Jerome Powell stated it would have no immediate effect. When pressed on whether he would resign if asked by Trump, Powell replied, “no.”
Meanwhile, top-performing stocks from the “Magnificent Seven” group — Apple, Alphabet, Microsoft, Amazon, Meta, Tesla, and Nvidia — reached new highs as well. Roundhill’s Magnificent Seven ETF, tracking these giants, rose over 8% in the past week, outpacing the S&P 500’s 4.69% gain.
LOCAL MARKET
Australian shares are set to open higher following the Federal Reserve’s anticipated quarter-point rate cut. After the Fed decision, US equities and bond yields saw minimal changes, with Fed Chair Jerome Powell emphasizing a strong economy and noting that, although inflation has significantly eased, it remains elevated. Powell downplayed any immediate policy impact from the recent election and linked bond market movements to growth expectations, affirming that the current policy stance remains restrictive.
Meanwhile, the Bank of England reduced its interest rate for the second time in three months, lowering it by 0.25 percentage points to 4.75%, marking the first dip below 5% since mid-2023, with an 8-1 vote by the Monetary Policy Committee.
On the earnings front, results are expected from ANZ, Arcadium Lithium, Block, News Corp, NexGen Energy, and REA Group. Cuscal’s $479 million float faces a critical phase, with limited information on cornerstone investors as of Thursday evening.