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Wall Street rebounds as tech sector leads gain

Tim Montague-Jones

Tim Montague-Jones has over 20 year investment management experience working in the financial markets. Previous experience includes a ten year stint at Morningstar as a Senior Equity Analyst/Portfolio Manager, founding the Morningstar Growth Portfolio and a founding member of their Investment Committee. Tim was also a Senior Equity Analyst for Macquarie Group and a member of the winning team to obtain the 2016 LONSEC Fund Manager of the Year award.

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Morning Research Notes - 29.01.25

 

US markets closed higher yesterday driven by a strong rebound in the tech sector, with major indices posting gains and investors shifting their focus to the upcoming Federal Reserve policy meeting. Commodities had a mixed session yesterday. Iron ore edged up by 0.1% to $US104.50 per tonne. In contrast, Brent crude fell by 2% to $US76.93 a barrel, and spot gold dropped by 1.1% to $US2,739.96 per ounce.

Wall Street closed higher on Tuesday, with the S&P 500 gaining 0.9%, the Dow Jones Industrial Average rising by 136 points (0.3%), and the NASDAQ Composite adding 2%. The tech sector rebounded, led by Nvidia, which recovered after a significant loss the previous day. General Motors and JetBlue Airways disappointed with their earnings, while Royal Caribbean and Boeing saw gains. Investors are now focused on the Federal Reserve’s upcoming policy meeting, with expectations that borrowing costs will remain unchanged. House prices showed moderate increases in November, reflecting the impact of higher mortgage rates.

Yesterday, the Australian stock market experienced a slight decline, with the ASX 200 falling by 0.12%. The performance of major indices was mixed: Materials dropped by 0.30%, Information Technology by 0.61%, and Utilities by 2.47%. In contrast, Financials and Healthcare saw gains of 0.32% and 0.49%, respectively. Commodities had a bearish day, with Aluminium, Zinc, and Copper all closing down, while Nickel managed to rise by 0.23%.

 

Chart of the day

 

Transit agencies in the United States are at a critical juncture, with revenue and funding unable to keep up with the rising costs of growth and innovation. For example, on average, ridership and fare revenue remain well below prepandemic levels. Before the pandemic, monthly ridership had already declined by 5 to 10 percent. But the pandemic exacerbated this trend, and passenger levels have since stagnated at about 80 percent of prepandemic norms. The shift to remote and hybrid work is one reason for the reduced demand, and transit agencies need to adapt to meet their communities’ evolving needs and to avoid a potential fiscal cliff.

 

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​​Source: McKinsey




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