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Morning Research Notes - 02.09.24
On Friday, the U.S. stock market experienced gains following the release of key inflation data, with notable movements in companies like Home Depot, Starbucks, Chipotle, and Nvidia. Commodities experienced a bearish day on Friday: Spot gold saw a decrease of 0.7%, reaching $US2503.39 per ounce. Brent crude also experienced a decline, falling 1.4% to $US78.80 per barrel. Similarly, iron ore prices went down by 0.9%, now standing at $US100.90 per tonne.
On Friday, the U.S. stock market saw gains following the release of key inflation data. The Personal Consumption Expenditure (PCE) index, the Federal Reserve’s preferred measure of inflation, showed a 2.5% annual increase in July, slightly below expectations. This bolstered hopes for an interest rate cut at the Fed’s upcoming September meeting. In response, several companies experienced notable movements: Home Depot’s shares fell after cutting its outlook on same-store sales, Starbucks’ stock surged 24% following the announcement of a new CEO, Chipotle’s shares dropped over 7% due to the same news, and Nvidia gained roughly 7% as analysts highlighted it as a top “rebound” stock.
On Friday, the Australian markets experienced a bullish trend. The ASX 200 closed 0.58% higher, reflecting strong performance across most major indices. The Materials, Financials, Info Tech, and Utilities sectors posted gains of 0.71%, 0.68%, 0.23%, and 0.52%, respectively. In contrast, the Health Care sector declined by 0.10%, being the only major index in the red. Commodities also had a positive day, with aluminium, copper, zinc, and nickel advancing by 1.07%, 1.09%, 1.49%, and 0.51%, respectively.
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Chart of the day
The semiconductor industry is set for remarkable growth over the next decade, driven by technological advancements, innovative manufacturing techniques, and significant investments from various countries. Key developments like EUV lithography are enabling the production of smaller, more powerful, and efficient semiconductors, essential for next-generation high-performance chips. The industry is projected to reach around $1.2 trillion by 2030, with expanding applications in AI and high-performance computing. Investments from the US, China, and South Korea are reshaping the industry, emphasising its strategic importance for national security and economic competitiveness. As the world becomes more digital, the demand for advanced semiconductors will continue to rise, making this an exciting time for the sector.
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Source: Livewire
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