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Morning Research Notes - 25.03.25
US markets experienced a significant rally yesterday, with major indices posting strong gains as reports of narrower and less strict U.S. trade tariffs boosted investor sentiment. Commodities had a mixed day on Friday. Gold experienced a decline, falling by 0.5% to $US3006.46 an ounce. In contrast, iron ore saw a significant increase, rising by 2.4% to $US102.35 a tonne. Brent oil also had a positive day, climbing by 1.3% to $US73.13 a barrel.
Wall Street closed sharply higher yesterday, with the S&P 500 rising 1.7%, the Dow Jones Industrial Average climbing 597 points (1.4%), and the Nasdaq gaining 2.3%. This surge was driven by reports suggesting that upcoming U.S. trade tariffs will be narrower and less strict than initially feared. In the corporate sector, Tesla jumped 12%, 23andMe slumped 59% after filing for bankruptcy, and NVIDIA climbed 3% on easing tariff concerns. James Hardie Industries fell 17% following its acquisition announcement, while Gold Fields dropped 5% after its buyout bid was rejected.
On Friday, the Australian market closed higher, with the ASX200 rising by 0.07%. Major sectors, including Materials, Info Tech, and Healthcare, all ended in negative territory, falling 0.78%, 1.07%, and 0.32%, respectively. In contrast, Financials and Utilities notched gains, rising 1.06% and 0.06%. Major commodities had a bearish day, with Aluminium, Copper, and Nickel all closing in the red. Zinc climbed 0.26%.
Chart of the day
Fewer S&P 500 companies mentioned "inflation" during their Q4 2024 earnings calls compared to the previous two years. Specifically, 230 companies cited "inflation," down from 285 in Q4 2023 and 353 in Q4 2022. This is the second-lowest number since Q2 2021, but still above the 10-year average of 188. The Industrials and Financials sectors had the highest number of mentions, while Consumer Staples and Materials sectors had the highest percentages of companies citing "inflation."
Source: FactSet Insight
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