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Morning Research Notes - 06.01.25
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Wall Street closed higher on Friday, with major indices rebounding thanks to gains in tech stocks. Major commodities had a bearish day: Spot gold closed down 0.6% to $US2,641.54 per ounce, as Iron Ore ended the day 2.6% lower to close at $US98.3 per tonne. Contrastingly Brent Crude gained 0.9% to $US76.58 a barrel.
U.S. stocks bounced back on Friday, ending a holiday-shortened week on a high note. Investors are hopeful for more Federal Reserve rate cuts and relaxed regulations from the incoming administration. Major indices closed higher, led by tech giants like Tesla and Nvidia, although they still posted weekly losses. The S&P 500 saw its third weekly loss in four, despite a strong year driven by AI advancements and the Fed’s rate cuts. Economic data showed improvement, but there’s uncertainty about future rate cuts due to inflationary concerns. The Dow rose 0.80%, the S&P 500 gained 1.26% and the Nasdaq climbed 1.77%. All S&P 500 sectors closed higher, with consumer discretionary stocks leading the way.
Due to technical difficulties this morning, we cannot provide a table or commentary on yesterday’s domestic market close.
Major commodities struggled on Friday: Aluminium (-2.41%), Zinc (-2.12%) and Nickel (-1.6%) all closed in the red. Copper managed to notch gains, closing 0.18% higher.
Chart of the day
This chart groups annual S&P 500 returns into 10-percentage-point ranges, using nearly a century of data to identify patterns in performance. Each year is colour-coded, with 2024 highlighted in the darkest blue to emphasize its exceptional performance, and earlier years gradually fade as we move back. The 10-20% and 20-30% gain brackets have historically been the most common, while outliers—such as dramatic declines during the Great Depression and the 2008 bear market—sit at the extremes. Notably, 2024’s annual return falls into the 20-30% gain range, placing it among the strongest years on record.
Source: Macrobond
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