News
Nvidia surge pushes S&P 500 to new record
A rise in Nvidia’s share price and weak labor market data pushed the broad S&P 500 index to a new record close.
The S&P 500 rose 1.18%, closing at a new record of 5,354.03 points. The tech-heavy Nasdaq index rose 1.96 percent to a new closing record of 17,187.90. The Dow Jones closed up 0.25%.
AI giant Nvidia dominated headlines as shares rose 5% to hit a new record high. The company also reached a market value of US$3 trillion. Investors continued to chase the stock after the company revealed its new line of chips earlier in the week. Tech giant Meta Platforms also contributed to the record close, finishing 3.8% higher on the day.
In other company news, Hewlett Packard rose more than 10% after reporting fiscal second-quarter revenue that surpassed consensus expectations. CrowdStrike jumped 12 percent on stronger-than-expected earnings and guidance.
On the macro front, private payroll data showed that hiring slowed further, with 152,000 jobs created last month versus expectations of 175,000, according to Dow Jones. Other data pointing to labor market weakness has further raised investors’ hopes that the Federal Reserve is seeing enough evidence to cut benchmark interest rates. The yield on the US 10-year note fell below 4.30%.
Trading in Fed funds futures now suggests a roughly 70 percent probability that central bank policymakers will lower the current target rate of 5.25 percent-5.5 percent in September, according to the CME FedWatch tool.
Attention will now turn to Thursday’s weekly jobless claims numbers and Friday’s important May jobs report. The May jobs report will be the most important data of the week for markets. Dow Jones said it expects 190,000 jobs to be created in May, up from 175,000 in April.
Turning to US sectors, Technology had the best performance, closing up 2.68% on the day. The worst performance was Public Services, which closed 0.58% lower.
The Bank of Canada added to investors’ growing confidence that the Fed is approaching a cutting cycle after announcing its first rate cut since 2020, as Canadian officials appear increasingly confident they have control of the inflation. Officials say they are more confident that inflation is headed toward the 2 percent target and say it is “reasonable to expect further cuts” if progress continues.
Futures
SPI futures point to a 0.5% gain.
Coin
One Australian dollar at 7:20 am was buying 66.48 US cents.
goods
Gold added 1.20 percent. Silver gained 1.54 percent. Copper rose 1.52%. Oil gained 1.12 percent.
Figures around the globe
European markets closed higher. London’s FTSE rose 0.18 percent, Frankfurt gained 0.93 percent and Paris closed 0.87 percent higher.
As for Asian markets, Tokyo’s Nikkei fell 0.89 percent, Hong Kong’s Hang Seng lost 0.10 percent, while China’s Shanghai Composite closed 0.83 percent lower.
Yesterday, the Australian share market closed up 0.41% at 7,769.
Dividends payable
United Australia Overseas (ASX:UOS)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
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