News
Big Tech Companies Drive US Markets to New Highs
Big tech names rose, pushing the broader market to new records ahead of eagerly awaited inflation data due out tomorrow, U.S. time.
The broad-based S&P 500 closed 1.02 percent higher at a record 5,633, its seventh straight day of gains. The Nasdaq added 1.18 percent to also set a new closing record at 18,647. The Dow Jones Industrial Average joined the rally, adding 1.09 percent to close at 39,721.
Technology was the day’s big mover, with semiconductor stocks rising. Taiwan Semiconductor closed 3.5% higher after reporting better-than-expected April-June revenue figures. Fellow semiconductor names Qualcomm and Broadcom rose 0.8% and 0.7%, respectively. AI giant Nvidia rose 2.7% on the day.
Apple shares closed 1.5 percent higher to mark their seventh consecutive record close. The stock has surged 20 percent in the past month, outperforming every stock in the “Magnificent Seven” except Tesla. The company also regained its position as the most valuable company by market capitalization.
In other company news, HubSpot shares plunged 13% after Bloomberg reported that Alphabet has shelved plans to buy the company.
Focus is now firmly fixed on key inflation data due out Thursday, U.S. time, with the release of the consumer price index report for June. Consensus expectations are calling for a 0.1% increase month over month and a 3.1% gain year over year. Core CPI, which excludes energy and food prices, is expected to have expanded 0.2% from the previous month and 3.4% from a year earlier. The producer price index is due out Friday.
In a second day of congressional testimony, Fed Chairman Jerome Powell said he felt the U.S. was still headed for a soft landing, where the Fed’s inflation target would be met without a punishing rise in the unemployment rate.
Turning to U.S. sectors, all sectors were in the black. Technology was the best performer overnight, closely followed by Materials. Financials posted the smallest gains.
Futures
SPI futures point to a gain of 0.9%.
Coin
One Australian dollar at 7:20 a.m. was trading at 67.48 US cents.
Commodities
Gold added 0.50 percent. Silver fell 0.14 percent. Copper gained 0.68 percent. Oil rose 0.85 percent.
Figures around the globe
European markets closed higher. London’s FTSE rose 0.66 percent, Frankfurt gained 0.94 percent and Paris closed 0.86 percent higher.
In Asian markets, Tokyo’s Nikkei rose 0.61%, Hong Kong’s Hang Seng lost 0.29%, while China’s Shanghai Composite closed 0.68% lower.
Yesterday, the Australian stock market closed down 0.16% at 7,816.81.
Ex-dividends
Transmetro Corporation (ASX:TCO) is paying 5 cents fully franchised
Westgold Resources (ASX:WGX) is paying 1.25 cents fully franchised
Dividends payable
Duxton Farms (ASX:DBF)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Stock Data, Trading Economics, CoinMarketCap.
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