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Morning Research Notes - 29.08.24
Yesterday, the S&P 500 fell as major tech stocks, including Super Micro Computer, NVIDIA, and Apple, suffered significant losses due to disappointing earnings and recession fears. Spot gold decreased by 0.8% to $US2505.59 per ounce. Brent crude fell by 0.9% to $US78.85 per barrel, while iron ore prices dropped by 0.8% to $US100.80 per tonne.
On Wednesday, U.S. stock markets displayed a cautious tone, with the S&P 500 edging up 0.1% to 4,496, the Dow Jones Industrial Average slipping 0.2% to 34,494, and the Nasdaq Composite rising 0.3% to 14,029. Trading volumes were notably subdued, reflecting investor hesitancy as they await Nvidia's earnings report, which is expected to influence tech sector sentiment. The yield on the 10-year Treasury note held steady at 4.27%. In the futures market, the CME Group's equity index futures showed little movement, indicating a wait-and-see approach from traders. Meanwhile, the Small Cap Market Index (SCMI) dropped 0.4%, highlighting a broader sense of caution in smaller, more volatile stocks.
On Wednesday, the Australian markets experienced a slight bullish trend due to a higher-than-expected yearly inflation rate reported the previous day. This event likely diminished investor confidence in the possibility of a rate cut, resulting in overall market weakness. The ASX 200 closed flat, reflecting mixed performance across major indices. Financials, Health Care, and Utilities closed 0.77%, 0.00%, and 0.06% higher, respectively, while the Materials and Utilities sectors fell by 0.97% and 0.61%. Commodities also ended their bullish streak, with Aluminium, Copper, Zinc, and Nickel falling in price by 1.61%, 1.21%, 2.5%, and 1.22%.
Chart of the day
With recent interest rate hikes and market adjustments, financing costs have tripled, leading to a drop in real estate values and pressure on owners to sell. The market has been stagnant, but with interest rates peaking and capital scarce, now is seen as an ideal time for selective acquisitions. This presents a unique opportunity to buy high-quality real estate at significant discounts, with the potential for strong future returns as the market stabilises.
Source: Livewire
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